[Congressional Record Volume 143, Number 113 (Tuesday, September 2, 1997)]
[Senate]
[Pages S8668-S8669]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. JOHNSON (for himself, Mr. Craig, Mr. Wellstone, and Mr. 
        Grassley):
  S. 1141. A bill to amend the Energy Policy Act of 1992 to take into 
account newly developed renewable energy-based fuels and to equalize 
alternative fuel vehicle acquisition incentives to increase the 
flexibility of controlled fleet owners and operators, and for other 
purposes; to the Committee on Energy and Natural Resources.

[[Page S8669]]

              THE BIODIESEL ENERGY DEVELOPMENT ACT OF 1997

  Mr. CRAIG. Mr. President, today I am pleased to introduce, along with 
Senators Johnson, Wellstone, and Grassley, the Biodiesel Energy 
Development Act of 1997. This legislation is an important step in 
helping achieve a very important goal of this Nation--that of shifting 
the focus of national energy demand away from imported oil toward 
renewable or domestically produced energy sources, as stated in the 
Energy Policy Act of 1992, also known as EPACT.
  To reach its goal, which is to replace 10 percent of petroleum by the 
year 2000 and 30 percent by the year 2010 with alternative fuels, EPACT 
requires Federal and State government fleets, and a limited number of 
private fleets, to purchase alternative-fueled vehicles [AFV's].
  Dedicated AFV's are vehicles that can only run on alternative fuels. 
Natural gas vehicles and electric vehicles are two of the most common 
AFV's. Flexible fueled vehicles [FFV's] are those vehicles which can 
run on alternative fuels, such as methanol and ethanol, petroleum 
fuels, or a combination of the two.
  Current EPACT mandates, incentives, and grants exclude biodiesel fuel 
blends from being designated as an alternative fuel or from it being an 
option for controlled fleet owners and operators. EPACT offers little 
incentive for the use of heavier duty FFV's where biodiesel would be 
most appropriate, as fleets may obtain credit for heavier duty FFV's 
only after they have fulfilled their light duty AFV purchase 
requirements. In addition, EPACT does not allow the conversion and 
warranty of existing vehicles to FFV standards when they are overhauled 
or rebuilt. Mr. President, the exclusion of biodiesel as an alternative 
fuel only impedes the ability of the fleets to meet EPACT mandates.
  Let me spell out some of the benefits that biodiesel provides. 
Biodiesel is a cleaner burning fuel that is made from natural, 
renewable sources such as vegetable oils, and is domestically produced. 
From these facts alone it is evident that the use of biodiesel can 
reduce the United States' dependence upon imported oil.
  Biodiesel also helps achieve a stated goal of this administration, 
which is to protect the environment by reducing emissions that may 
damage the ozone layer and contribute to the greenhouse effect. 
Biodiesel does just that. When used in a 20-percent blend with 
petroleum diesel, biodiesel results in a significant reduction in 
visible smoke and odor and reduces particulate matter by as much as 14 
percent. When used in combination with an oxidation catalyst, biodiesel 
reduces particulate matter by 45 percent, carbon monoxide emissions by 
41 percent, and total hydrocarbons by 65 percent.
  Mr. President, biodiesel does all of this without forcing expensive 
engine modifications, reducing the payload capacity of vehicles, or 
reducing the range of vehicles. Biodiesel performs similarly to 
petroleum diesel in terms of torque, horsepower, and miles per gallon. 
In short, biodiesel performs just as well as petroleum diesel, and yet 
provides users with all of the benefits of alternative fuels.
  In addition, once the biodiesel market takes off, it is estimated 
that it could add more than $11 billion to the States that grow oilseed 
crops. Biodiesel is also biodegradable and nontoxic, resulting in 
little to no environmental threat.
  The Biodiesel Energy Development Act would solve many of the problems 
in EPACT, and help fleets reach EPACT's goals. This legislation would 
designate a biodiesel-petroleum diesel blend as an alternative fuel; 
equalize incentives between AFV's and alternative fuels; equalize 
incentives between different types of AFV's; increase the flexibility 
of EPACT fleet owners and operators in meeting existing mandated AFV 
purchase requirements; and provide an incentive-based solution 
regarding flexible-fuel use in AFV's.
  Mr. President, it is time we enabled the fleets that are mandated by 
EPACT to purchase AFV's with the option of using biodiesel fuel. I urge 
my colleagues to support this important legislation.

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