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4/26/06

NBB Testimony to US Senate Committee on Agriculture Stresses Importance of Biodiesel in the Trucking Industry

“Virtually every product that we use everyday is brought to us by a diesel-powered truck.  Everything that is in this room, this chair I am sitting in, this table, this microphone, all brought here by diesel powered trucks and America’s truckers.” 

On April 26th, the US Senate Committee on Agriculture held a hearing on the state of biofuels.  Representing the biodiesel industry, NBB CEO Joe Jobe testified on the growth of biodiesel usage especially in the trucking industry.  Jobe talked about the importance of the trucking industry to the US economy and the need for domestically produced fuel, like biodiesel, to lesson demand for foreign oil and have a positive effect on pricing at the pump. “The need for increased use of biofuels has never been more pressing,” Jobe said. “Diesel fuel prices are at an all-time high. The majority of diesel fuel in this country is used in over-the-road trucks. The trucking industry serves as a critical part of our economy, and impacts every industry, business, and consumer in America.”  Jobe went on to say “As crude oil prices continue to rise, America’s trade deficit continues to balloon. Every gallon of domestic, renewable biodiesel that is used to replace diesel fuel refined from imported crude reduces the need for imported crude…Even a small reduction in demand has a positive effect on straining price pressures.”

Trucking company owner and farmer Mike Clarke read Jobe’s testimony online and called to thank him for talking about the impact of high fuel prices on the trucking industry.  Clarke felt that the testimonial was “important because we need to get out of buying so much foreign oil.”  As a farmer for more than 50 years, Clarke started using biodiesel to help create a market for locally grown soybeans.  What he discovered from running B20 (20% biodiesel, 80% petro-diesel) was the benefit of much cleaner exhaust when he pulled his trucks into the garage for maintenance in addition to increased engine efficiency.  Now, Clarke’s Dayton, Ohio based Lytle Trucking, has four Freightliners with Caterpillar engines all running B100 (100% biodiesel).  As he drives past the fields of corn and soybeans in Ohio, Clarke says “It’s a good feeling being out here and knowing that you don’t have any foreign oil in the fuel tank.”

Jobe focused on three main goals in his testimony: extending the federal tax incentive for biodiesel to keep it affordable; continuing the Bioenergy program to encourage new production and increase supply, which will help decrease the cost at the pump; and continuing the USDA Biodiesel Education Program to create awareness.  Jobe went on to say “Fuel is the single largest operational cost in the trucking industry.  Average diesel fuel prices have nearly doubled over the past four years.  This dramatic increase in operational cost offers enormous challenges to the trucking industry, and will be felt throughout our entire economy.”  Clarke thinks that Jobe’s testimony will have a positive impact on the Agriculture Committee’s decision to extend these important initiatives and keep the biodiesel momentum going.  He feels that with the demand for oil so high, the time has come for alternatives, like biodiesel that can be domestically produced and burn cleaner.  Clarke stated “It’s a no brainer to clean up that much exhaust with so little cost.  It’s much cheaper to do it this way.”

 

 

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