Congress considers biodiesel measures

| 6/23/2006

Two bills aimed at boosting the use of renewable fuels are currently making their way through Congress.

The first, S3554, the Alternative Diesel Standard Act of 2006, was introduced by Sen. Barack Obama, D-IL, on June 21 and calls for the national diesel pool to contain at least 2 billion gallons of alternative and renewable diesels by 2015.

The total national diesel pool is about 40 billion gallons, according to the American Petroleum Institute.

The bill is currently being considered by the Senate Committee on Environment and Public Works.

The second bill comes from the House of Representatives. The bill, HR 5650, was introduced by Rep. Kenny Hulshof, D-MO, and calls for a permanent extension of renewable fuels tax incentives for ethanol and biodiesel.

The current tax incentive took effect in 2005 and provided tax breaks for building biodiesel facilities and infrastructure. It is set to expire in 2008.

The tax bill is currently under consideration by the House Committee on Ways and Means.