Biodiesel Legislation Introduced at the Federal Level

Several important legislative measures, designed to encourage the use of biodiesel, have been introduced in the U.S. Senate and House of Representatives.

Biodiesel Tax Incentive (S. 355) - Introduced by U.S. Senators Blanche Lincoln (D-AR) and Chuck Grassley (R-IA), S. 355 would provide a one-cent reduction in the diesel fuel excise tax for each percentage of biodiesel blended with petroleum diesel up to 20 percent.
EPACT Reform (S. 356, H.R. 316) - Introduced by U.S. Senators Lincoln, Kit Bond (R-MO), and Jim Talent (R-MO), S. 356 would remove the 50 percent limit on biodiesel use under the Energy Policy Act (EPACT) of 1992 program. U.S. Representatives John Shimkus (R-IL) and Karen McCarthy (D-MO) introduced H.R. 316, the U.S. House version of S. 356.
CMAQ (H.R. 318) - Introduced by Representatives Shimkus and McCarthy, H.R. 318 would allow biodiesel use under the congestion mitigation and air quality (CMAQ) improvement program. Minnesota Representative Mark Kennedy has signed on as a cosponsor of H.R. 318.

"Securing passage of legislation that would encourage the use and production of biodiesel is especially important for Minnesota," said Mike Yost, a Murdock, Minn. soybean farmer and National Biodiesel Board (NBB) director. "This federal legislation would provide substantial support to the Minnesota biodiesel legislation passed last year."

There are many benefits to increased biodiesel use. A recent Environmental Protection Agency (EPA) report of biodiesel emissions confirms substantial reduction of unburned hydrocarbons, carbon monoxide, and particulate matter compared to emissions of petroleum diesel. In addition, its primary source — soybeans — is grown here in the U.S., which lessens our nation's dependency on foreign oil. Increased biodiesel use would also provide a much-needed boost to the struggling farm economy.

The previous Congress was on the verge of approving an Energy Bill that contained strong biodiesel incentives. However, issues unrelated to biodiesel prevented congressional negotiators from reaching an agreement on a final Energy Bill before the 107th Congress adjourned last November.

"Capitalizing on the momentum generated from last year's success," Yost notes, "ASA and NBB are working hard to enact an energy bill that will help the growth of the biodiesel industry.