The biodiesel $$ credit is gone :(

[aznative]

OKLAHOMA CITY - An alternative fuel for diesel engines is off to a shaky start this year even though it emits fewer pollutants and cuts down on petroleum use because it's made from environmentally friendly waste and vegetable oil.

A federal tax credit that provided makers of biodiesel $1 for every gallon expired Friday. As a result, some U.S. producers say they will shut down without the government subsidy.

http://www.msnbc.msn.com/id/34660164/ns ... nd_energy/

[jamest]

That was a nice tax credit. It'll be interesting to see what happens. Is there any talks of it being renewed? Can our local producers stay in business without it? I remember bio was a lot more expensive than dino before the credit existed.

[darth_diesel]

I'd love to hear BioBoss' take on it, but it looks like he hasn't logged in recently.

[kellym]

I'd love to hear BioBoss' take on it, but it looks like he hasn't logged in recently.

Anyone bought bio after the first of the year? Price change? Any issues with the bio during these cold mornings?

[jamest]

I just filled up at WSP on Friday for something around $2.56

[aztdijetta]

I've had no problems running with B100 from AZ BioDiesel, however my car is garaged over-night. Their cloud point temperature is really low. I think it's 37 degrees F, but don't quote me on that. AZ BioDiesel runs all their vehicles on B100 through the winter and they have had no issues either. I am going to stop by AZ BioDiesel to pick up some fuel in the next week so I'll ask Dan about the credit impact to him. Someone I know talked to the Dynamite Biodiesel coop and they said they have made a significant investment in their processing plant and plan to continue selling biod.

So much for our government planning ahead and not waiting until the last minute to try and extend it. Hopefully the credit will be restored.

[darth_diesel]

Anyone bought bio after the first of the year? Price change? Any issues with the bio during these cold mornings?

I did this last week at AZBio, and they hadn't raised their price ($2.69) at that time. Don't know if they have yet or not, but I'll likely be going again on Monday.

[BioBoss]

Hi Everyone,

Az BioDiesel is still alive and producing for now without the tax credit.

It is supposed to be passed by Feb/March and be retroactive to Jan 1st.

For now, we can afford to "suck it up" and wait for the credit to come back.
Everyone can thank our new partner "Bob" for stepping up to fund us until the credit returns.
Bob also hasn't lost his passion for this industry and our new plant is going "full steam ahead"!!!

Most plants around the country unfortunately, have closed or severely reduced production as they can't weather a long wait to get the credit dollars.

The word is that if congress doesn't get around to it before Feb, most of the industry will close and many may not be able to reopen. 29,000 jobs will be lost very soon. Congress comes back Jan 20th from their holiday break. Health care is still taking priority to anything else.

Our industry is the victim of congress' focus on health care and not having time to pass the credit extension.
Several senators (Dem & Rep) have sent letters to Obama to get the extension passed quickly but, no answer yet.

Some are saying that Big Oil is behind this. The EPA was going to pass (this Feb) it's new alt fuel standards which, for the first time, would include a national minimum requirement for 1 billion gallons of biodiesel to get the industry on its feet and growing. The EPA now is saying they may just give the 1 billion gallons to the ethanol industry to add to the minimum requirement they already have since they don't believe the biodiesel industry can now live up to the new requirement.
Another win for Big Oil and their support of ethanol! The alternative fuel (ethanol) that isn't a threat to the future of replacing petroleum oil.

It really "chaps" me that Obama had the nerve recently to tout the $2.3 billion he gave out to create new forms of energy and add 17,000 jobs while he knows that the biodiesel industry is about to lose 29,000+ jobs and already can produce new energy but no one in congress or the white house cares and you'll notice very little press about the loss of the tax credit and it's potential to bankrupt this industry even if they get around to passing the extension later in the year.

Please help save the biodiesel industry by going to this link and sending emails to our congressmen:
Your Help Is Needed to Reinstate the Biodiesel Tax Incentive
http://www.biodiesel.org/news/taxcredit/default.shtm

With your help, AZ BioDiesel and this industry can survive!!!
Thanks,
Dan

[zilym]

Here's what I wrote my reps:

Please support a multi-year extension of the biodiesel tax incentive by cosponsoring S. 1589 (Cantwell/Grassley) and H.R. 4070 (Pomeroy/Shimkus).

Arizona has one of the best domestic producers of Biodiesel at AZBiodiesel.com. I've used their fuel in my car, which is my primary means of commuting to work. It makes my car run much smoother through the improved lubricity and higher cetane inherent to the fuel, and may help my car last longer. Plus, biodiesel burns cleaner, which will help improve air quality for everyone.

AZBiodiesel.com produces biodiesel from waste vegetable oil. This lowers the cost of doing business for local AZ restaurants, who ordinarily have to pay to dispose of waste fryer oil. Unlike Ethanol made from corn that could have been consumed as food, Biodiesel from waste vegetable oil essentially helps lower the cost of food.

I can see no downsides and hope local biodiesel production can expand well into the future. Please help Biodiesel get all attention possible when legislature promoting its expansion comes up on your schedule.

[jamest]

I wrote in as well, kept it short and sweet.

[aztdijetta]

Here is my letter to our state senators:

Dear <senator>.
Please help push the renewal of the federal biodiesel tax incentive that expired on 12/31/2009.

Biodiesel produces 78% less pollution than regular diesel, creates jobs for this country, and very importantly helps reduce our dependency on the need for foreign oil. Without this tax incentive, many biodiesel manufacturers are closing right now which is creating a loss jobs.

This tax incentive gave the industry a boost to help explore better ways to produce biodiesel. Without this incentive, much of this work will stop. Please help them continue as this is part of our national security.

I would really appreciate your support in this very important issue.

Thanks,
Dan Boyle
User of biodiesel and supporter of the local AZ BioDiesel company.



Are there suggestions for others that we should write to other than our local government? Any news on the renewal push?

[aztdijetta]

I just found this article today although it's 6 days old. Let's keep our fingers crossed. Anyone else heard any news? I want to see AZ BioDiesel's great progress continue!

http://www.reuters.com/article/idUSTRE6213AL20100302

[aznative]

Well, the jobs bill passed today...I hope the credit was in it!

[BioBoss]

The biodiesel tax credit got removed from the jobs bill by Senator Reid shortly after a bipartisan bill came out that had included it. Senator Reid didn't want anything bipartisan nor did his scaled down version of the jobs bill really create any jobs unless you are a highway worker. It mostly spent money building new highways.

Now the biodiesel tax credit is in the newest jobs bill and was approved by a bipartisan vote in the Senate and actually creates jobs including those in the biodiesel industry (or saves what's left of them).

Unfortunately, this bill is now stalled in the House as ObamaCare has taken center stage ahead of jobs again.

It looks like when the House gets around to it, there is bipartisan support for the real jobs bill and it will pass........when they get around to it.

Dan Rees
BioBoss

[aztdijetta]

The bill passed in the house before the holiday!! Now it's on to the senate. It did not pass by a big margin though (215 to 204). With oil still pouring into the Gulf of Mexico and an enormous cleanup to continue for years it may make some senators rethink their views on Biod and alternative fuels. One can only hope.

Biodiesel, No Drilling Required!!! I think I am ready for a new bumper sticker. This one may get a few more people thinking as this disaster is right in our own backyard.

http://www.biodiesel.org/news/pressreleases/20100528_HousePassage.htm