The American Soybean Association (ASA) is delighted that the U.S. House of Representatives approved legislation on September 28 to allow public vehicle fleets to earn credits under the Energy Policy Act (EPACT) of 1992 by using a blend of 20 percent biodiesel and 80 percent petroleum diesel, commonly called (B-20). "Bipartisan House approval of biodiesel is a victory for soybean producers and for all Americans," said ASA President Mike Yost of Murdock, Minnesota. "Biodiesel legislation is one of ASA’s top priorities to benefit the farm economy. It could add up to 11 cents to the price of every bushel of U.S. soybeans, in addition to reducing U.S. dependence on foreign oil and boosting use of a cleaner burning fuel."

There was no dissent among House Members during a voice vote to amend the Energy Policy and Conservation Act (H.R. 4017). The bill included language to allow federal, state and other public vehicle fleet managers using B-20 or higher blends to earn one EPACT credit for each 450 gallons of biodiesel used by medium and heavy duty trucks and buses to reduce U.S. dependence on imported petroleum.

House Commerce Committee Members John Shimkus (R-IL) and Karen McCarthy (D-MO) championed the biodiesel legislation, which will increase vegetable oil consumption without requiring new tax breaks or subsidies. The Committee had previously given its approval to the bill, which was supported by the natural gas industry as well as by soybean producers.

According to the Congressional Budget Office, the legislation will save the Federal government $10 million annually from reduced EPACT compliance costs. It will also give private and government fleet managers greater flexibility to meet their current requirements under EPACT.

The same biodiesel language is also included in a "farmer relief package", which may be added to the final agricultural appropriations bill for FY-1999. The Senate had attached an amendment to its version of the appropriations legislation to designate biodiesel as an alternative fuel eligible for use in alternative-fueled vehicles in public fleets.

ASA has made biodiesel legislation a top priority because of the potential impact on soybean markets. According to USDA, a modest, nationwide market for biodiesel of 50 million gallons a year could increase farm income by $160 million annually. Prices for soybeans, the major source of biodiesel in the United States, are at their lowest price in 10 years, reflecting a 45 percent decline in the past two years.

The national soybean check-off program has invested more than $22 million since 1992 to commercialize biodiesel in the United States. Since 1994, more than $50 million in private capital has been invested in U.S. biodiesel production facilities.