The Advantages of Using Soy Diesel
Soy diesel is a biodegradable, nontoxic, and renewable form of diesel. In addition, it drastically reduces air pollution and is capable of being used either by itself, or in combination with petroleum diesel. In addition, the use of soy diesel can substantially reduce a country’s dependence on other countries on fuel. Yet, soy biodiesel has not received the attention, or the legislation, it deserves.
State Incentives
Most states do offer some form of tax incentive or other cash breaks for the use of soy diesel. In Hawaii, for example, state excise taxes are lower on biofuel blends. Illinois provides a partial exemption to state sales taxes for biodeisel blends ranging from 1% to 10%, and a full exemption to any blends with a percentage higher than 10%. This exemption lasts until 2013.
In Arkansas, biodiesel producers are granted funding up to $.10 per gallon. In Missouri, some biodiesel fuel producers can receive up to $.30 per gallon for the first 15 mm gallons produced each year. Other biodiesel fuel producers in Missouri can receive $.10 per gallon for up to 15 mm gallons that are produced after the first 15 mm gallons.
Pennsylvania has also created an Alternative Fuels Incentive Fund. This fund provides grants to assist in the purchase of biodiesel fuel mixtures of 20% or more by reimbursing up to $.05 per gallon to municipalities, schools, non-profits, political subdivisions, and partnerships, and LLC’s. The grant also assists in retrofitting vehicles.
In Texas, biodiesel production companies can receive 16.8 cents per gallon of biodiesel fuel produced, up to 18 million gallons per year for each plant. Furthermore, the biodiesel portion of blended fuels are exempt from state excise tax.
Statewide Incentives
For soybean biodiesel use to spread, more states need to follow Minnesota’s lead. Recently, Minnesota became the first state to create a statewide biodiesel fuel initiative. Through this initiative, Minnesota will blend 2% biodiesel fuel in all of its fuel throughout the state. Minnesota accomplished this amazing goal by meeting all of the requirements set forth in March 2002 by a bi-partisan vote.
One of the requirements Minnesota had to meet was biodiesel production of at least eight million gallons per year. Minnesota has far exceeded this requirement, which biodiesel production exceeding 63 million gallons annually. In addition to its statewide 2% biodiesel fuel legislation, many of Minnesota’s school buses, municipal fleets and trucking firms are already using a 20% mixture.
With its kindness to the environment and its ability to dramatically boost local and state economies, soy diesel is certainly the wave of the future.
