On the heels of unprecedented success this summer, the biodiesel industry prepares for Congress' return from August recess to start the fall session. Upon its return to Washington, Congress will confront a Supreme Court battle, a stem cell tissue debate and pressing issues for the biodiesel industry. Some of those matters include Congress wrapping up the remainder of the fiscal year 2006 (FY06) appropriations bills and budget reconciliation.

Specifically, the biodiesel industry will have an eye on the FY06 agriculture spending bill, which includes funding for two key programs: the Commodity Credit Corporation (CCC) Bioenergy Program and the biodiesel education program. The biodiesel industry secured these two key programs under the 2002 Farm Bill.

In the CCC program, which was authorized at $150 million per year, success had been achieved at procuring the authorized amount in early years of the program, only to fall short in FY05 at $100 million. As Congress will rush to the finish line, the biodiesel industry and the American Soybean Association will look to better the House FY05 mark of $60 million and the Senate mark of $90 million. Even with the tax incentive in place, this program remains vital to making biodiesel a success in its infant stages, notwithstanding maintaining a good competitive edge as prices at the pump continue soaring in light of Hurricane Katrina.

The FY06 appropriations bill also holds funding for the biodiesel education program. The 2002 Farm Bill authorized the National Biodiesel Education Program at $1 million annually, or a total of $5 million for fiscal years 2003 through 2007. The education program was developed to educate, research and promote growth in the biodiesel industry. In the FY06 bill, the biodiesel industry seeks again to have this program fully funded.

One of the other key priorities for Congress this fall will be budget reconciliation. Budget reconciliation is an exercise where Congress reevaluates how and at what levels existing authorized programs are funded, then it cuts programs, takes that savings and applies it to the deficit or budget shortfall. This means any on-budget spending is a prime target. The USDA budget is no exception. The biodiesel industry will have to be prepared to fend off any attacks on key programs in the USDA budget.

This fall, like last fall, the biodiesel industry expects a productive session full of achievements to move the industry forward.