Wisconsin
Soybean News
Soybean
Group Proposes State Biodiesel Policy Incentives
MADISON
– January 4, 2007 – Ensuring the quality of
biodiesel is essential for both consumers and producers
of this increasingly popular, renewable fuel and the Wisconsin
Soybean Association board of directors is urging widespread
support for their biodiesel policy initiative.
“The
WSA biodiesel initiative focuses state resources at increasing
the use, availability and reliability of biodiesel fuel
sold in Wisconsin,” says Bob Derr, WSA President and
soybean producer from Marshall. “Developing Wisconsin’s
biodiesel industry is vital to all State soybean producers
as well as to consumers as it impacts not only our fuel
supply, but also our air quality and ultimately, everyone’s
health.”
The
WSA proposal recommends that Wisconsin institutes ASTM D6751
standards for biodiesel fuel throughout the state’s
supply chain. It calls for the state to set rules requiring
tank inspections and standards for the maintenance and cleaning
of tanks used for biodiesel. Because biodiesel is an effective
solvent, it has a tendency to “clean-out” or
loosen deposits present in containers and piping making
it important to have clean systems prior to adding biodiesel.
Specifically,
the proposal from WSA urges the State to focus support in
four areas, as follows:
1. Expand the distribution network for biodiesel fuel throughout
the state by instituting tax incentives for wholesale and
retail distributors and bulk fuel users.
2. Encourage consumption of biodiesel fuel via incentives
for government entities to purchase new diesel vehicles.
3. Adopt a definition of biodiesel that conforms to ASTM
D6751 standards.
4. Establish proper testing, laboratory and enforcement
resources for biodiesel fuel within the Wisconsin Department
of Agriculture, Trade and Consumer Protection (WDATCP) and/or
Department of Commerce.
Funding
to underwrite the cost of tank inspection and cleaning is
recommended at both the retail and fleet level, along with
tax incentives to offset the cost of installing storage,
piping and blending systems. Additional tax incentives are
recommended to encourage the sale, distribution and use
of biodiesel fuel blends as a source of “green”
heating oil as well as other off-road diesel applications.
WSA
also proposes incentives for buying biodiesel fuel that
correspond to the amount of biofuel blended. For instance,
B2 might reduce the tax by 6 percent; B10 could offer additional
savings and B20 an even higher tax reduction.
A new
vehicle incentive (2007 or newer model) would cover incremental
costs of purchasing vehicles with diesel engines by government
entities. Money for this program would come from oil-overcharge
dollars allocated by the Joint Finance Committee. Once complete,
this program could help support additional incentive programs
for diesel passenger vehicles and light trucks.
Funding
should be allocated for workers and resources to effectively
monitor and regulate the production and distribution of
biodiesel fuel in Wisconsin and to ensure compliance with
quality standards. Finally, the state should establish,
or contract with, a testing laboratory to insure compliance
with these proposed product standards.
“The
WSA board of directors urges widespread support for their
biodiesel policy initiative, which focuses state resources
at increasing the use, availability and reliability of biodiesel
fuel sold in Wisconsin, and we urge legislators to act on
it this year,” Derr states.
The
WSA is devoted to bringing together all peoples interested
in the production, marketing, distribution, and utilization
of soybeans and soybean products. For over 30 years, WSA
has been working to build valuable relationships between
growers throughout Wisconsin while focusing on the promotion
of Wisconsin soybeans. Formed in 1972 with 200 members,
the WSA currently has over 1,200 members. Additional information
on WSA is available online at http://www.wisoybean.org or
by calling the Soybean Program office in Madison at 608-274-7522.
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