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. |