States Encourage Use of Soy-Based Fuel

ore than a year after Minnesota’s biodiesel law took effect — drawing attention to quality-control problems with the production and distribution of the typically soy-based fuel — several states across the nation passed tax credits to encourage the use of biodiesel and considered legislation to establish their own statewide fuel mandates.

Biodiesel proponents tout the fuel as a way to reduce U.S. dependence on foreign oil while improving the environment by reducing emissions.

National Biodiesel Board spokes-man Scott Hughes said tax reductions, fuel incentives and grants to encourage use of the fuel have been passed by legislatures in 30 states, while legislation making biodiesel blends mandatory was considered in Kansas, Missouri, Mississippi, New Mexico, California and Washington in 2006.