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Biodiesel Gains Policy Attention

State and federal legislators are considering biodiesel proposals.

From the Farm Bill to state legislations, policymakers are discussing ways to promote the use and development of biodiesel.

Democratic leaders in Congress have voiced a commitment to renewable fuels in writing 2007 Farm Bill, and Agriculture Secretary Mike Johanns assured the House Agriculture Committee that USDA's farm bill proposals include the 9006 program from the 2002 Farm Bill. That program set aside $23 million per year for the USDA Rural Development Agency to administer a Renewable Energy Program.

State lawmakers are also looking for ways to add production incentives, tax exemptions and credits, and other ways to help the biodiesel industry grow. Around a dozen states are considering some form of legislation that would require a certain percent of diesel sold in the state to be biodiesel.

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