Durbin Introduces Bill to Promote Greater Use, Quality of Biodiesel

Press Release

United States Senator Dick Durbin (D-IL) introduced legislation today that increases biodiesel production nearly three-fold over current levels, to 1.25 billion gallons in 2012. Biodiesel burns far cleaner then petrol diesel and emits fewer unburned hydrocarbons, carbon monoxide and carbon dioxide, all of which contribute to global warming.

Biodiesel fuel is created by converting soybean oil, animal fats, yellow grease from grease traps and other feed stocks into transportation fuel. Current biodiesel production is about 250 million gallons yearly up from 75 million gallons of biodiesel fuel in 2005. This years production is equal to nearly 6 million barrels of traditional fuel oil.

"Biodiesel is a fuel that holds great promise in terms of moving our country toward energy independence," Durbin said. "While in its infancy, the biodiesel industry has seen tremendous growth due to the high cost of oil. This bill will create incentives for producers and consumers alike and will allow this important alternative fuel source the chance to become a mainstream alternative to foreign oil."

Today, over 140 factories can produce biodiesel. These plants are in all parts of the country which is why states from all regions are looking to biodiesel as an emerging industry and creating state-based incentives to increase production. The State of Illinois has offered a biodiesel tax incentive since 2003, increasing demand for domestically produce fuel.

Durbin's bill, the Biodiesel Promotion and Quality Assurance Act, also contains quality and labeling requirements designed to improve the standardization of biodiesel fuel nationally. Senators Carper (D-DE), Grassley (R-IA) and Lugar (R-IN) joined Senator Durbin as cosponsors of this bill.

Durbin's bill creates the following biodiesel fuel standards:

· Minimum Percentage: Included in the requirement is a minimum amount reserved for biodiesel, where at least 80 percent of the mandate will be biodiesel.

· EPA Registration: In order to be introduced into commerce all fuel, either "biodiesel" or "bio-based diesel replacement" fuel, is required to be registered through EPA pursuant to the Clean Air Act, and must have an appropriate ASTM standard.

· After 2012: The Administrator of EPA, in consultation with the Secretary of Agriculture and Secretary of Energy will determine the appropriate amount in 2013 and each year thereafter.

· Waiver Authority: The Administrator of EPA, in consultation with the Secretary of Agriculture and Secretary of Energy, would have the ability to waive the standard in cases of market disruptions.

"Biodiesel fuel is economic, clean, domestically produced, and it also reduces greenhouse gases while powering more fuel-efficient vehicles," said Sen. Tom Carper (D-Del.) "With this legislation we will guarantee an increasing demand for this fuel and provide an opportunity for our farmers to contribute to our energy security, while adding economic value to their crops."

The bill also requires the EPA Administrator, in consultation with the Secretaries of Agriculture and Energy, to promulgate regulations to ensure that only high-quality biodiesel or "bio-based diesel replacement" fuel that meets ASTM standards is introduced into commerce. Finally it requires retailers offering biodiesel to label pumps with the percentage of biodiesel contained in the blends.

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