"It's clear that developing renewable fuels like biodiesel will mean a lot to a farmer's bottom line in the 21st century, Grassley said. "As the leading soybean producer in the nation, Iowa would stand to gain not only from the increased demand for the raw product, but also from the value-added processing, manufacturing, transportation, and service sectors that would accompany the industry."
Grassley said that biodiesel is a clean burning alternative fuel, produced from renewable sources such as soybean oil. Biodiesel contains no petroleum but it can be blended at any level with petroleum diesel to create biodiesel blend. This soy-based, clean fuel is simple to use, biodegradable, nontoxic and essentially free of sulfur and aromatics.
Iowa is the nation's largest producer of soybeans and is home to two biodiesel plants. "Our vegetable oils are plentiful, and our energy needs are great," Grassley said. "Biodiesel is an environmentally sound way to fill the gap between energy supply and demand."
Grassley said a new tax incentive would help Iowa diversify its ag-based economy and accelerate the research, development and investment necessary to spur production of green energy source using raw farm commodities.
Grassley led the fight for the inclusion of new opportunities and incentives for biodiesel production in the energy bill that passed the Senate. A compromise with the House of Representative was not reached before Congress adjourned the 107th Congress. During the last Congress Grassley released a study he had requested from USDA to analyze the correlation between the development of new soy-based products and the U.S. farm economy. The study confirmed that increased demand for soy-based products, such as biodiesel, could lead to significant economic benefits.