Reaction to the State of the Union Address

The American Soybean Association (ASA) and the National Biodiesel Board (NBB) commended President Bush for stressing the importance of passage of an Energy Bill to help diversify America’s dependence on foreign oil. To accomplish this goal, U.S. soybean farmers and the biodiesel industry are calling on White House and Congressional leaders to quickly complete the Energy Bill that contains the first federal biodiesel tax incentive.

In his January 20th address, President George W. Bush stated, "Consumers and businesses need reliable supplies of energy to make our economy run - so I urge you to pass legislation to modernize our electricity system, promote conservation, and make America less dependent on foreign sources of energy."

Biodiesel is a cleaner burning alternative to petroleum-based diesel, and it is made primarily from soybeans that are grown in the United States. Securing passage of a biodiesel tax incentive is the top legislative priority of the ASA and NBB, and Congress has pursued this goal for the last four years. Due in large part to the efforts of U.S. Senator Chuck Grassley (R-IA) and others, a biodiesel tax incentive was included in the final Energy Bill. It amounts to one penny per percentage point of biodiesel blended with petroleum diesel.

NBB Chairman and ASA Vice President Bob Metz, a South Dakota soybean farmer, urged all biodiesel supporters to contact their Senators and ask for their full support of the Energy Bill. "We need Congress to finish the job on the Energy Bill now," he said. "We’ve come too far to watch such vital legislation to farmers and America go by the wayside."

"Congress should take immediate action to pass the Energy Bill that has landmark legislation for American-made renewable fuels," said American Soybean Association President Ron Heck of Iowa. "This Congress has the opportunity to stimulate the economy as they help shift the nation away from its dependence on foreign oil."

Support of biodiesel and other renewable fuels can aid U.S. energy security as well as boost the domestic economy through its production. National security and the economy were both stressed by the President in his address. President Bush spent approximately half of his 54-minute speech discussing national security concerns. Furthermore, he stated that, "We must continue to pursue an aggressive, pro-growth economic agenda."

Biodiesel works in any diesel engine with few or no modifications. It can be used in its pure form (B100), or blended with petroleum diesel at any level—most commonly 20 percent (B20). More than 400 major fleets use biodiesel commercially nationwide. More than 200 retail filling stations also make biodiesel available to the public, and hundreds of petroleum distributors carry it nationwide.

A U.S. Department of Energy and U.S. Department of Agriculture full lifecycle emissions study found that for every unit of fossil energy needed to make biodiesel, 3.2 units of energy are gained. In contrast, it takes 1.2 units of fossil resources to produce 1 unit of petroleum diesel.

Biodiesel reduces emissions, and it is nontoxic, biodegradable and essentially free of sulfur and aromatics. Biodiesel offers similar fuel economy, horsepower and torque to petroleum diesel while providing superior lubricity. It significantly reduces emissions of carbon monoxide, particulate matter, unburned hydrocarbons and sulfates. On a lifecycle basis, biodiesel reduces carbon dioxide by 78 percent compared to petroleum diesel.