June 16, 2005... Saint Louis, Missouri... The American Soybean Association (ASA) eagerly watched today as the United States Senate Committee on Finance included language to extend the tax incentive for biodiesel fuel until the end of 2010, as part of the Energy Policy Tax Incentives Act of 2005. Unless Congress passes an extension, the current biodiesel tax incentive, which took effect on January 1, 2005, will expire on December 31, 2006.

"Extension of the tax credit is essential to the success of the biodiesel industry," said ASA President Neal Bredehoeft, a soybean producer from Alma, Mo. "Biodiesel, made from renewable resources like soybeans, is an essential component of a comprehensive national energy bill that needs to be on President Bush’s desk for signature as soon as possible."

The biodiesel tax credit, which amounts to a penny per percentage of biodiesel blended with conventional diesel, was included in the JOBS Act of 2004 at the insistence of Senator Chuck Grassley (R-IA). Last month, Senators Blanche Lincoln (D-AR) and Jim Talent (R-MO) introduced legislation to extend the biodiesel tax incentive in the Senate, and Representatives Kenny Hulshof (R-MO) and Earl Pomeroy (D-ND) introduced identical legislation in the House.

"In the U.S., millions of trucks and buses already burn diesel fuel, as do railroad locomotives, commercial marine vessels, construction and agricultural equipment," Bredehoeft said. "These vehicles can, with few or no modifications, utilize biodiesel-blended fuels, which will help reduce our dependence on foreign oil, improve our environment and improve prices paid to farmers for their soybeans." 

More than 400 major fleets use biodiesel commercially nationwide. About 300 retail filling stations make biodiesel available to the public, and more than 1,000 petroleum distributors carry it nationwide. Biodiesel 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.

"ASA greatly appreciates the steadfast support of our friends in Congress who have routinely championed the many benefits of biodiesel and the need for a tax incentive to nurture this fledgling industry," Bredehoeft said. "Once again, leaders like Senators Grassley and Lincoln have gone to bat on our behalf, and we extend sincere thanks for their support."

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Neal Bredehoeft, ASA President, 660/674-2442, nbredehoeft@almanet.net
Bob Callanan, Communications Director, (314) 576-1770, bcallanan@soy.org
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