[Congressional Record Volume 151, Number 67 (Thursday, May 19, 2005)]
[Senate]
[Page S5533]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. LINCOLN (for herself and Mr. Talent):
  S. 1076. A bill to amend the Internal Revenue Code of 1986 to extend 
the excise tax and income tax credits for the production of biodiesel; 
to the Committee on Finance.
  Mr. TALENT. Mr. President, today Senator Lincoln and I introduce 
legislation to extend the current excise tax credit for biodiesel 
through 2010. This tax credit brings great benefits to our nation's 
economy and environment while at the same time reducing our dependence 
on foreign oil.
  Biodiesel is a cleaner burning alternative to petroleum-based diesel, 
and it is made from renewable resources like soybeans and other natural 
fats and oils, grown here in the United States. It works in any diesel 
engine with few or no modifications. It can be used in its pure form 
(B100), or blended with petroleum diesel at a level--most commonly 20 
percent (B20). Soybean farmers in Missouri and across the Nation have 
invested millions of dollars to build a strong and viable biodiesel 
industry.
  In last years JOBS bill, we created an excise tax credit for 
biodiesel; a $1/gallon credit for biodiesel produced from virgin oils, 
and a $0.50/gallon credit for biodiesel produced from yellow grease or 
recycled cooking oil. This important tax credit is set to expire in 
less than 2 years. It is imperative that we extend this incentive that 
is expected to increase domestic energy security, reduce pollution and 
stimulate the economy.
  I certainly would prefer to fill up my tank with a clean burning fuel 
grown by farmers in our Nation's heartland instead of petroleum 
imported from the Saudis. Our farmers pose no security risks. I'm not 
alone in this preference. 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.
  I am pleased that we will soon have a biodiesel plant in Missouri. 
Missouri Soybean Association and Mid-America Biofuels LLC recently 
announced plans to build a biodiesel plant in Mexico, MO. The plant is 
expected to produce 30 million gallons of biodiesel annually. There is 
strong support for this endeavor and they have exhibited exceptional 
leadership by bringing this plant to Missouri. I look forward to 
working with them.
  As I've said before, biodiesel is a fuel of the future that we can 
use today. It 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 emissions by 78 percent compared to petroleum 
diesel. In other words, biodiesel is good for your car and the 
environment.
  Additionally, this new value added market for soybeans brings jobs to 
our economy and benefits to farmers. Based on the USDA baseline 
estimates for future soybean production, over a five year time period 
the biodiesel tax incentive could add almost $1 billion directly to the 
bottom line of U.S. farm income. In addition, the provisions will 
significantly benefit the U.S. economy and could increase U.S. gross 
output by almost $7 billion.
  I want to thank Senator Lincoln and Senator Grassley for their 
leadership on this important issue. We need to prevent this tax credit 
from expiring. It is expected to increase biodiesel demand from an 
estimated 30 million gallons in fiscal year 2004 to at least 124 
million gallons per year, based on a U.S. Department of Agriculture 
study.
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