1. Biodiesel mean new markets for soybean oil. Under normal circumstances, soybean oil in surplus. Due to short crops this year and last, supplies are more stable. However, we need to be developing new markets for soybean oil, biodiesel offers the best potential for displacing large volumes of soybean oil. Biodiesel can provide a floor on the soybean oil market.

2. The Senate passed energy bill contains a biodiesel tax incentive that works like the new proposed ethanol volumetric excise tax credit. The provision has strong bi-partisan support in the Senate and the House and is a priority for Senate Finance Committee Chairman Grassley.

3. The cost of the biodiesel tax incentive is only $76 million (according to the Joint Committee on Taxation). This is not a costly provision.

4. The Renewable Fuel Standard (RFS) provides NOTHING for biodiesel without the tax incentive. Biodiesel is only included as an eligible fuel for meeting the requirements. Ethanol can easily meet the requirements and no additional biodiesel will be used.

5. Biodiesel has strong environmental and human health benefits as well as being a renewable, home grown fuel.

6. Congress should be making the investment in domestically produced energy sources, especially at this time. Biodiesel and ethanol can help reduce our dependence on imported petroleum. However, biodiesel, just like ethanol, needs help competing with petroleum products. Ethanol is not cost competitive without tax incentives and neither is biodiesel. Both need and deserve support…..it should not be an either/or issue.