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ISSUE: BIODIESEL

Biodiesel, a relatively clean-burning, renewable fuel produced from new and used animal and vegetable oil, is in a unique position to replace a portion of the diesel fuel consumed in this country. Biodiesel has three large advantages over regular petroleum diesel. First, it is not a petroleum-based fuel, which means that using biodiesel would reduce our dependency on foreign oil. Second, biodiesel is produced domestically, which means that using biodiesel will create jobs and contribute to local economies. The third major advantage of biodiesel is that it is clean; biodiesel produces significantly less harmful emissions than regular petroleum diesel when burned in an internal diesel combustion engine. (Note, however, that biodiesel emits higher levels of nitrogen oxides (NOx); pure biodiesel emits up to 13% more NOx than conventional diesel.)

Most state legislation pertaining to biodiesel falls into one of two categories – mandates and tax incentives. Legislation that puts forth a mandate generally requires that all diesel fuel sold in the state be a low-blend biodiesel fuel. Other legislation enacts tax incentives for the use of biodiesel. Usually, the incentives are determined by the percentage of biodiesel that is mixed with the regular petroleum diesel, with higher percentages yielding higher incentives.

Arizona
HB 2123 - Introduced 1/11/2001 and enacted on 4/2/01, the bill proposes to allow entities subject to the fleet conversion requirements under the EPAct to use biodiesel for any or all of the vehicle fleet conversion requirements.

Illinois
SB 134 - Introduced 2/19/2003, the bill requires all diesel fuel sold in the state for use in internal combustion engines contain at least 2% biodiesel fuel oil by volume. SB 134 is currently still pending.

Iowa
SF 465 - Introduced 3/15/2001 and enacted on 4/19/01, the bill establishes a revolving fund for the use of the State Department of Transportation to purchase biodiesel fuel for use in department vehicles. The fund will include money received from the sale of EPAct credits banked by the Department, money appropriated by the General Assembly, and any other money obtained or accepted by the Department for deposit in the fund.

Minnesota
SF 326 - Introduced 1/29/2001 and enacted 3/15/2002, the bill requires all diesel fuel sold in the state from July 1, 2002 through June 30, 2006 to contain at least 2.0 percent biodiesel fuel oil by volume. On and after July 1, 2006, all diesel fuel sold in the state is required to contain at least 5.0 percent biodiesel fuel oil by volume.

Ohio
HB 293 - Introduced by Representatives Todd Book and Derrick Seaver on 10/2/2003, the bill represents the most progressive biodiesel legislation proposed to date. Effective June 1, 2005, the bill requires all diesel-powered vehicles that are owned by the state or a political subdivision to use only diesel fuel that has a biodiesel rating of 20 or higher. Also, effective June 1, 2006, the bill prohibits any person from selling or delivering to any distributor within the state, or importing into the state for sale, any diesel fuel unless the fuel has a biodiesel rating of five or higher.

This page was last updated on March 5, 2004.

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