In a bi-partisan move, Sen. Blanche Lincoln, Democrat from Arkansas, and Norm Coleman, Republican from Minnesota, have introduced legislation today to extend the federal biodiesel tax credit. The legislation would extend the federal excise tax credit and income tax credit for biodiesel to 2017. Lincoln originally introduced the credit and got it passed in 2004.
In a press release, the National Biodiesel Board was quick to praise the action:
“Senator Lincoln is again blazing trails for biodiesel to boost America’s energy security, economy and the environment, including climate change,” said NBB Chief Executive Officer Joe Jobe who was in Washington, D.C. for the bill’s introduction. “Extending the tax incentive gives confidence for continued biodiesel industry growth.”
The release went on to point out how Lincoln’s original legislation helped the American biodiesel industry go from just 22 plants with a capacity of 157 million gallons of fuel in 2004 to today’s 105 plants able to produce 864 million gallons of biodiesel.
“Our American agricultural producers and domestic companies have demonstrated their commitment to energy independence through the production of renewable fuels like biodiesel,” Sen. Lincoln said. “It’s time for Congress to follow its initial work and make the necessary investment for continued progress and development. I look forward to working with advocates of alternative energy sources like the National Biodiesel Board towards our shared goal of promoting greater production of renewable fuels.”
“Biodiesel is central to our efforts to free America from our dangerous dependence on foreign oil,” Sen. Coleman said. “By passing the long-term extension of the biodiesel tax credit contained in this bill, we can help ensure that production of this critical renewable fuel continues to grow.”
The NBB says the industry adds $24 billion to the U.S. economy between 2005 and 2015 and will create nearly 40,000 jobs in many different sectors. Tax revenues from biodiesel will keep nearly $14 billion in the U.S. that would otherwise be spent on foreign oil… more than paying for the incentives.
Despite a 100 percent increase in corn prices due to higher ethanol demand, the overall impact on food prices is expected to be minimal, according to an agriculture department economist.
Senators Tom Harkin (D-IA) and Richard Lugar (R-IN) have introduced legislation that would direct the U.S. Department of Energy to study the feasibility of transporting ethanol by pipeline from the Midwest to the East and West coasts.
Meanwhile, 
Wisconsin already has an aggressive plan for renewable energy. Governor Jim Doyle wants to replace 25% of the energy used in the state with energy from renewable sources, such as biodiesel and ethanol, by the year 2025 (
Senator John Thune (R-SD) is asking federal officials to approve the use of a 20 percent blend of ethanol in vehicles.
Last year I covered what was then known as the 
“We have an opportunity to really bring about an economic renaissance to rural Illinois by the increased use of ethanol and biodiesel,” Boland said. “We know there are a number of new (ethanol and biodiesel) plants that are being constructed around the state. … What this does is, it brings hundreds of construction workers to small towns … and a permanent work force of anywhere from 35 to 75 workers.” 
Those are the words of Will Steger, famed Arctic explorer, now on a four-month-long, 1200-mile expedition across the Canadian Arctic’s Baffin Island. 
So what is Steger trying to prove as today he and his sleddog team approach Iqaluit, Canada through -50 degree wind chills? Ironically enough, global warming. 
The ethanol industry, through the 
California-based Oryxe Energy International has announced that Texas has approved the company’s biodiesel fuel additive, ORYXE LED for Biodiesel, for use in the state.