WASHINGTON -- Legislation that would create a federal mandate for biodiesel was proposed this week in the U.S. House of representatives by a bipartisan group of lawmakers including Representatives Baron Hill (D-Ind.), John Shimkus (R-Ill.) and House Agriculture Chairman Collin Peterson (D-Minn.), according to a report by the Petroleum Marketers Association of America's PMAA Capitol Hill News.
The legislation, the Biodiesel Promotion & Quality Assurance Act of 2007, would establish a nationwide biodiesel mandate starting with 450 million gallons in 2008 [image-nocss] and increasing it to 1.25 billion gallons by 2012. Advocates of the bill argue that no major changes to existing retailer infrastructure or motor vehicles would be necessary for biodiesel blends up to 20%.
PMAA said that it has historically opposed any federal renewable fuels mandate because mandates often create shortages and shortages always create high consumer prices.
One component of the measure is a provision pre-empting state biodiesel mandates not enacted prior to January 2008.
Meanwhile, the National Biodiesel Board (NBB) applauded the bipartisan legislation to create a stable domestic market for biodiesel.
"This legislation is good for America's energy security, economic growth and the environment because it would set a floor for biodiesel demand," said Joe Jobe, NBB CEO. "The young U.S. biodiesel industry can do more to expand America's domestic refining capacity if this legislation is enacted. The biodiesel industry looks forward to working with Congress to pass a renewable requirement in the nation's diesel pool as part of any effort to expand the Renewable Fuels Standard."
Click here to view the full text of the legislation.
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