Missouri Senate gives approval to biodiesel bill
March 17, 2008
Lake Saint Louis
The Missouri State Senate voted last week to approve a bill that would place requirements on biodiesel. The bill has a requirement of the diesel fuel sold in Missouri to contain at least 5 percent biodiesel. The measure, SB 759, got preliminary approval Monday after a late night of debate.
This bill follows a law that took effect Jan. 1 to require Missouri gasoline to contain a 10 percent ethanol blend.
Biodiesel can be made from vegetable oils or animal fat. Four other states have a standard of 2 percent, and New Mexico has a 5 percent requirement that will take effect in 2012, two years after the Missouri law could take effect. According to the Missouri Soybean Association, Missouri would become the sixth state to enact a biodiesel requirement.
Senator Bill Stouffer, the bill’s sponsor, hopes this measure will lessen the dependence of foreign oil and be a boost to local farmers. Missouri’s corn and soybean farmers back this bill as an additional way to improve the environment.
By the end of 2008, biodiesel plants in Missouri are expected to have a total annual capacity of nearly 130 million gallons. This figure represents about twice the needed supply of biodiesel in Missouri.
Opponents of the biofuel mandates say increased food prices for consumers will result. Sen. Victor Callahan, D-Independence, called the legislation "a massive government intrusion into the marketplace.” Another law-maker compared the bill to ‘big-government Russia’.
It still faces one more Senate vote before it goes to the House for consideration. Under this bill, biodiesel producers who fail to meet quality standards for their fuel could be fined, by the Department of Agriculture, up to $10,000 per violation.
Some have raised questions about the bill introduced by Stouffer on grounds that he has invested in alternative fuel production plants and received tax credits for this investment. Under Missouri law, this is allowed for elected officials as long as their share of ownership is less than 10 percent.
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