1. Biodiesel in the United States Cynthia Iglesias Guven Agriculture Attache U.S. Embassy Ankara

2. Biodiesel Production in the U.S. Expected to Rise from 25 Million Gallons in 2004 to 225 Million Gallons in 2006. Increase in Production is a Response to the 2005 Legislation, Economic Considerations and Environment Concerns From Soybean Oil to Recycled Cooking Oil Currently, 66 Biodiesel Plants in the U.S. 49 Under Construction + 8 Expansion Projects Total Installed Capacity by Mid-2007: 1.11 Billion Gallons

3. Soy Oil is Most Important Biodiesel Feedstock in the U.S. 70% of the U.S. Biodiesel Facilities Use Only Soyoil as a Feedstock 20% Plants Use Multiple Feedstocks 7% Plants Use Recycled Cooking Oils & Fats 3% Plants Use Beef Tallow or Cottonseed Oil Most New Plants Intend to Use Primarily Soy Oil as a Feedstock Some Southern Coastal Plants Likely Will Use Imported Palm Oil

4. Amount of U.S. Soybeans for Biodiesel and for Exports (Millions of Bushels)

5. U.S. Vegetable Oil Consumption & End Stocks 1996/97 – 2005/06

6. Standards for biodiesel in the U.S. ASTM D 6751-03: Only Approved up to B20 Meets Federal Clean Air Regulations National Biodiesel Accreditaion Commission Developed National Fuel Quality Program Called BQ-9000 Biodiesel = Fuel and Fuel Additive with EPA B100 = Alternative Fuel by DOE and DOT

7. ASTM D 6751-03

8. Biodiesel Usage in the U.S. Main Reason: Environmental Benefits U.S. Postal Service, Dept. of Defense, National Park Service All 50 States and Most Major Cities Public School buses Personal Vehicles Other

9. Biodiesel Sold in the U.S. – 5 Years

10. Federal and State Policies 2005 Energy Policy Act 2002 Farm Bill Authorized Biodiesel Fuel Education Program to Help Fund Education Programs on Biodiesel. Some of the 50 States & Various Cities Have Policies to Encourage Biofuels Usage Many States Adopted Tax Incentives and Require Use of Bio-Blends in Diesel Engines

11. Energy Policy Act of 2005 Renewable fuel is defined as motor vehicle fuel derived from any agricultural commodity, its by- products or any other biomass. The law does not specify a commodity based structure for meeting its increased use numbers, which can be met through a wide variety of feedstock. Biodiesel Engine Testing Program Biodiesel Excise Tax Small Agrobiodiesel Producer Credit Alternative Fuels Report, including Biodiesel

12. Energy Policy 2005 cont. Tax Incentives: – $1/gallon (.01 per %) of biodiesel blended with petroleum diesel for first-use oils (such as soybean oil) – $.50/gallon (½ cent per %) for biodiesel made from other sources such as recycled cooking oil and animal fats.

13. Examples of U.S. State Policies Tax Refunds or Reductions Tax Credits/Exemptions/Loans for Production, Blending, Selling, and Equipment Production Facility/Infrastructure Grants Use Requirement/Incentive on All Public Diesel Vehicles Price Preference Promotion and Education Policies

14. U.S. Biodiesel Industry-Key Points Relatively New Industry Future is Unclear Capacity is Growing Imports Possible