American soybean farmers are responsible for the creation and passage by Congress of the federal Biodiesel Tax Incentive that is so important to the biodiesel industry. Soybean farmer-leaders continue to support the biodiesel industry through support for policies and programs and the state and national level.

Federal legislation and programs have spurred the biodiesel industry -- The $1.00 per gallon biodiesel tax incentive enacted by Congress in 2003 and extended through 2008 has created significant investment in the biodiesel industry. Biodiesel consumption in 2003 was about 20 million gallons and increased to about 250 million by 2006.

The North Carolina Soybean Producers Association favors extending the biodiesel tax incentive and supports authorizing a Commodity Credit Corporation Biodiesel Incentive Program to assist U.S. biodiesel producers to offset competitive advantages provided to foreign biodiesel exporters by their governments.

State government incentives and programs for biodiesel are catching on around the nation. North Carolina created several new policies and programs aimed at biodiesel production and use in 2007.

The following biodiesel-related legislation was enacted by the North Carolina General Assembly in the 2007-2008 Session:

S634/H557. NC GREEEN Act

Sponsor: Senator Charlie Albertson

Appropriates $15M for a grant program to spur biofuels production, distribution and use as well as other energy-related business incentives.

S1272. Definition of Biodiesel

Sponsor: Senator John Snow

Changes definition of biodiesel from any fuel derived in whole or in part from agricultural products to the technical definition of biodiesel that meets ASTM industry standards.

S1277. State Vehicle Warranties

Sponsor: Senator John Snow

New motor vehicles purchased by the State that are designed to operate on diesel fuel must have an express manufacturer's warranty that allows the use of B 20 fuel.

S1452. Diesel School Buses to Use B20 Fuel

Provides that 2% of diesel fuel purchased to fuel school buses be a minimum B20 blend, and requires that all diesel school buses be capable of operating on B20 biodiesel.

Sponsor: Senator John Snow

H1990. Establish the NC Biofuels Center of NC/Funds

Sponsor: Rep. Crawford

Appropriates $5 million to establish the North Carolina Biofuels Center in Oxford in cooperation with NC Department of Agriculture & Consumer Services.