May 21, 1999

The Department of Energy has issued an interim final rule to allow public vehicle fleets to earn credits under the Energy Policy Act of 1992 by using blends of 20% biodiesel and 80% petroleum diesel. Government fleet use of biodiesel could add up to 11 cents per bushel to the price of soybeans, growers assert.

According to the Congressional Budget Office, legislation passed last year to require government fleet use of biodiesel will save $10 million a year from reduced compliance costs. The bill was supported by the natural gas industry as well as by soybean producers and the biodiesel industry.

The DOE interim final rule establishes procedures to give credits allowed under the legislation approved last year. American Soybean Association President Mike Yost, Murdock, MN, said ASA welcomed the rule as "an important step toward boosting soybean prices while benefiting the environment."