Complete Story
12/31/2005
Congress Passes Comprehensive Energy Bill
Soy Biodiesel Wins Big in Washington D.C.
Congress Passes Comprehensive Energy Bill
A decade of farmer-driven grassroots policy work paid off when Congress included soy biodiesel provisions in both the Transportation and Energy bills.
The omnibus Energy Policy Act of 2005 is the first comprehensive energy bill in 13 years and includes.
- Extension of the federal soy biodiesel excise tax credit from 2006 through December 2008
- Small agri-soy biodiesel producer credit
- Provisions for alternate fuel infrstructure
- Establishes a 7.5 billion gallon renewable fuels standard
- Funding to ensure the acceptance of soy biodiesel in the future.
- Establishes an $8 million program for biodiesel research under the direction of the National Biodiesel Board.
- Makes certain all engine companies will develop new clean diesel technology for market entry in 2007.
The excise tax credit provides $1 per gallon for agri-biodiesel made from farm products like soybeans. The credits are designed to lower the cost of soy biodiesel to consumers in taxable and tax exempt markets.
The Energy Bill also creates a credit of $.10 per gallon on the first 15 million gallons of agri-diesel produced by small producers. A small producer is categorized as producing 60 million gallons or less.
The Transportation Bill paved the way for soy biodiesel technology. This bill included:
Funds from the Transportation Bill will be leverged with industry dollars to give the soy biodiesel industry the oportunity ti incorporate soy biodiesel into engine testing programs and position soy biodiesel to be in the forefront of new diesel technology.
