Biodiesel Fuel Bill Would Hike Costs, Lower Truck Engine Performance

    ALEXANDRIA, Va., March 22 NATSO, the professional
association of the travel plaza and truckstop industry, praised a Minnesota
committee's decision to table legislation requiring fuel sold in that state to
contain biodiesel.  The bill, H.F. 362, would require that diesel fuel sold in
Minnesota contain a minimum of five percent biodiesel fuel oil by volume.

    NATSO contacted the committee this week, strongly urging legislators to
reject H.F. 362 and similar proposed legislation.  NATSO told legislators that
biodiesel fuel is more expensive and there are significant questions regarding
its performance, particularly in cold weather.  After a hearing yesterday, the
Minnesota House Environment and Natural Resources Policy Committee elected not
to consider the measure.

    "We applaud the committee's decision to table this bill," said Jason Lynn,
Sr. Director of NATSO Government Affairs.  "The legislation would put
Minnesota businesses at a significant competitive disadvantage with similar
businesses in nearby states, which do not have a biodiesel fuel requirement."

    Because fuel costs are a large and important part of a fleet's or
independent truck driver's operating costs, the sale of diesel fuel is
fiercely competitive, with the typical truckstop operator's margin on diesel
fuel only pennies on the gallon.  Because the standard long-haul truck can
travel over 1,000 miles without refueling, purchasing decisions can more
easily be made on price rather than convenience.

    A minimum biodiesel requirement, as contemplated in H.F. 362, would result
in a more expensive product than traditional diesel fuel.  Such a requirement
could result in a price increase of anywhere from .05 to .30 cents more per
gallon than traditional diesel fuel, making diesel fuel sold in Minnesota
substantially more expensive than fuel in neighboring states and spurring
fleets and drivers to make their purchases elsewhere.

    In addition to cost there are many questions about the performance of
biodiesel in colder climates.  Cold weather can "cloud" or "gel" biodiesel to
a greater degree than traditional fuel, greatly lowering truck engine
performance.  Increased concerns about biodiesel "gelling" in colder weather
could also persuade purchasers to avoid Minnesota businesses in favor of
fueling up in other states.