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News Release Government should step aside for biodiesel, study says A new paper on biodiesel policy suggests that eliminating government interventions is more important than offering incentives for the vegetable oil-based fuel. "Biodiesel legislation has focused on financial incentives and use mandates, while failing to address major government-imposed obstacles. In fact, biodiesel makes sense on so many levels that it doesn't need help from the government; it just needs the government to get out of the way," said Angela Eckhardt, author of Freedom Fuel: How and Why Biodiesel Policy Should Reflect Freedom. Eckhardt is director of the Rural Oregon Freedom Project at the free market think tank Cascade Policy Institute. Two years ago, her family began making biodiesel out of used fryer grease at a cost of about $.50 a gallon. The retail cost of biodiesel is typically more expensive than petroleum diesel, due largely to the price of fresh vegetable oil. Eckhardt says the price of vegetable oil will come down as more farmers start producing oil crops, but farm subsidies encourage farmers to grow other crops or not to grow crops at all. She recommends an elimination of farm subsidies coupled with a thorough review and elimination of agriculture regulations that hinder farmers. Biodiesel sales regulations and taxes also contribute to the higher retail cost, she said. "There should be nothing to stop a farmer from selling the excess biodiesel that he produces to his neighbors or community without government oversight," Eckhardt said, noting that the alternative fuel has been proven safe for vehicles and the environment. Eckhardt said another major stumbling block for biodiesel is the lack of affordable diesel vehicles in America, caused in part by environmental regulations, such as California's emission control standards that Oregon and Washington are on track to adopt. "Instead of treating diesels like the scourge of the automotive industry, we need to consider the diesel engine's potential as an environmental and economic solution," Eckhardt said. Eckhardt calls biodiesel a "liberating solution" and encourages all biodiesel-related policy to reflect that theme. "There is a reason the terms ‘fuel' and ‘power' also have political application. Petroleum can't be obtained by just anyone so it is ripe for control," Eckhardt said. "Biodiesel can literally put power into the hands of every American." "Given the history of petroleum politics, it is imperative that today's policy decisions ensure a free market for biodiesel. Producers of all sizes must be free to compete in this industry," she said. Freedom Fuel: How and Why Biodiesel Policy Should Reflect Freedom is available online at www.cascadepolicy.org or by calling 503-242-0900. Eckhardt may be reached by email at angela@cascadepolicy.org. |
