Bill Calls For Biodiesel Fuel in Air Improvement Program; Clinton Sets Announcement

August 12, 1999

Reps. John Shimkus (R-IL) and Karen McCarthy (D-MO) have introduced a bill to allow biodiesel to compete for funds in the Congestion Mitigation Air Quality Improvement Program. The program funds transportation-related projects targeted to improve air quality. Separately, President Clinton may announce significant new biofuels initiatives when he speaks at the Agriculture Department today at 1:00.

Under the program targeted by Shimkus and McCarthy, the federal government supports states and metropolitan agency efforts to make transportation more efficient while improving air quality. Shimkus and McCarthy's bill expands the program's authority to allow funding of alternative fuel projects that include purchases of biodiesel made from natural, renewable sources such as soybean oil.

Clinton is scheduled to join Secretary of Agriculture Dan Glickman, Secretary of Energy Bill Richardson, Senate Agriculture Committee Chairman Richard Lugar (R-IN) and farm groups for what is being billed as a major announcement on biomass and renewable energy today. The announcement may involve renewable fuel use by the federal vehicle fleet, sources say.

Last October, Congress approved legislation to allow public vehicle fleets to earn credits under the Energy Policy Act of 1992 by using a blend of 20% biodiesel and 80% petroleum diesel. American Soybean Association says that could add up to 11 cents per bushel to the price of soybeans and reduce U.S. dependence on foreign oil and encourage the use of a cleaner burning fuel.