PRESS RELEASE

FOR IMMEDIATE RELEASE: October 13, 2005
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Kleeb Discusses Alternative Fuels with Team of University Scientists

DUNNING, NE-Scott Kleeb, candidate for Congress in Nebraska's 3rd District, called on Congress to consider more aggressive federal tax incentives and renewable fuel standards to boost production of biofuels and bring down the price at the pump.

"Bio fuels like ethanol and biodiesel appeal on many levels," Kleeb said. "They reduce our reliance on foreign oil. They are clean burning. And they have the potential to boost our local economy by lowering fuel costs and boosting commodity prices for corn and soybeans."

"But we have to find a way to keep the costs of these fuels consistently below the cost of petroleum fuels," Kleeb added. "Until we've done that -- until we deliver an impact on the farmer's bottom line -- this conversation is mostly academic."

Although corn and bean yields this year have been better than expected, low commodity prices and high fuel prices are expected eat into profits for Nebraska farmers. In Central Nebraska, the average price of petroleum diesel is $3.18 a gallon, up from $2.05 a gallon a year ago. B20, a blend of 20 percent biodiesel and 80 percent petroleum diesel, is approaching price parity with 100 percent petroleum diesel. But even with the current elevated prices, petroleum diesel is still cheaper than biodiesel.

Most biodiesel in the Midwest is made with soybeans. Nebraska is the fifth-largest soybean-growing state. To date, however, Nebraska has no biodiesel processing plants, while Iowa has four such plants.

According to the Nebraska Ethanol Board, ethanol plants in Nebraska employ more than 900 people. In addition, the industry has created nearly 5,000 jobs in related fields for Nebraska. Kleeb said he would like to see biodiesel production make a similar contribution to the state economy over time.

"It's pretty hard not to get excited at the prospect of having farm equipment -- whether its combines, irrigation pivots, or grain transport trucks -- fueled by the very grain that's grown and harvested right here in Nebraska," Kleeb said.<p>