The American Soybean Association (ASA) applauds new pro-biodiesel legislation introduced by Representatives John Shimkus (R-IL) and Karen McCarthy (D-MO) during the final hours before the U.S. House of Representatives adjourned on August 6. Shimkus and McCarthy introduced H.R. 2788 to allow biodiesel to compete for funds in the Congestion Mitigation Air Quality (CMAQ) Improvement Program. ASA supports the legislation to amend CMAQ because biodiesel is being unfairly excluded.

The CMAQ program funds transportation-related projects that are targeted to improve air quality. The federal government supports states and metropolitan agency efforts to make transportation more efficient while improving air quality. Shimkus and McCarthy’s bill expands the CMAQ program’s authority to allow funding of alternative fuel projects that include purchases of biodiesel, which is a proven, cleaner burning fuel made from natural, renewable sources, such as soybean oil.

"We are pleased to see the House recognize biodiesel’s value to Clean Air programs," said ASA President Marc Curtis. "Representatives Shimkus and McCarthy’s leadership on biodiesel brings good news for the environment and soybean producers since it will create additional uses of soybean oil, which is often in surplus. We urge the House and Senate to approve this provision as soon as they return to Washington, D.C., in September."

Additional co-sponsors of H.R. 2788 are Thomas Ewing (R-IL), Ray LaHood (R-IL), Jerry Costello (D-IL), Jerry Weller (R-IL), Lane Evans (D-IL), David Phelps (D-IL) and Gil Gutknecht (R-MN).

According to USDA, a modest, nationwide market for biodiesel of 50 million gallons a year could increase farm income by $160 million annually.

On October 15, 1998, Congress approved legislation 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 B20. Representatives Shimkus and McCarthy also were champions of that legislation.

ASA made passage of that legislation one of its top priorities because it can add up to 11 cents per bushel to the price of soybeans as well as reduce U.S. dependence on foreign oil and encourage use of a cleaner burning fuel. It also gave vehicle fleet managers greater flexibility to meet their current alternative fuel use requirements under EPACT. Federal, state and other public vehicle fleet managers using B20 or higher blends can earn one EPACT credit for each 450 gallons of biodiesel used by medium- and heavy-duty vehicles.

Since ASA gained congressional approval of biodiesel use under EPACT, the National Biodiesel Board, National Renewable Energy Laboratory, Department of Energy and state soybean boards have conducted numerous biodiesel educational programs for fuel buyers.