Tuesday, January 05, 2010

Markets In Everything. Or Not. At Least Not Without the $1/Gallon Tax Credit for Biodiesel

DAILY TECH -- Now another nail has been placed in the commercial biofuel industry' coffin -- the government $1/gallon federal tax credit will expire this Friday. And for many businesses in the industry, it may be the last; amid a frustrating market, many biodiesel makers across the U.S. say they will likely call it quits and cease production when the credit ends. Without the $1/gallon federal tax credit, the biodiesel industry no longer appears commercially viable.

12 Comments:

At 1/05/2010 5:56 PM, Anonymous Benny The Man said...

A Republican subsidy for agriculture killed by a D-Party President?

I think so.

 
At 1/05/2010 5:57 PM, Anonymous Rand said...

What about cases (such as in Minnesota) where the use of biodiesel is required for governmental vehicles? Will the biodiesel become much more expensive or possibly even unavailable?

 
At 1/05/2010 6:08 PM, Blogger juandos said...

Hmmm, more jobs killed by the EPA...

 
At 1/05/2010 6:23 PM, Anonymous Anonymous said...

A Republican subsidy for agriculture killed by a D-Party President?.

Actually, an extension was approved in theDemocrat controlled House and failed in the Senate where Republicans are drawing a line over increased government spending. Either way, Democrats were and are big supporters of this and other biofuel subsidies:

As a candidate, Obama proposed to up the RFS to 60 billion gallons by 2030. If this proposal is adopted, “subsidies would top $120 billion per year by the end of the period, for a cumulative subsidy during the 2008-2030 period of more than $1 trillion.

OpenMarket.org

A trillion here, a trillion there. Who's really paying attention? Not Benny.

 
At 1/05/2010 6:52 PM, Anonymous Benny The Man said...

Well, I guess those lefties at Bill Bickley's old magazine, don;t have their facts striaght.

Republicans drunk on ethanol, National Review says
by Marlow Lewis

October 12, 2007 @ 1:45 pm

Seems Buckley's boys think the R-Party is "drunk on ethanol."

 
At 1/05/2010 6:59 PM, Anonymous Benny The Man said...

This is from a prmoinent House Republican:

In June 2009, House Republicans introduced the American Energy Act (H.R. 2846) - an all-of-the-above energy plan that will responsibly use our natural resources to create new energy and make our environment cleaner. This bill includes specific measures to encourage development of renewable energy sources, such as wind, solar, hydropower, nuclear and biomass, while also producing more American-made oil and natural gas.

Highlights of the American Energy Act:
Renewable Energy

The bill uses a portion of revenue from new offshore drilling to create a Renewable and Alternative Energy Trust Fund to provide funding for energy programs authorized by federal law, such as biomass, hydroelectric, clean coal, solar, wind, geothermal and other forms of renewable energy.
The bill encourages new and expanding energy technologies by making permanent tax credits for the production of renewable electricity, like wind, solar, and biomass. The bill also makes permanent investment tax credits for solar energy and for fuel cell properties and extends the biodiesel and renewable diesel tax credits.

Yeah, sure, the R-Party doesn't support biofuels (farm subsidies).

 
At 1/05/2010 7:23 PM, Blogger juandos said...

Hey pseudo benny, do you have a link for 'Marlow Lewis'?

A search of NRO did not turn up that name...

Did you spell it right or are you making it up as you go along?

There is a Marlo Lewis at CEI...

RE: H.R. 2846, I think you need to get your facts straight pseudo benny because according to the
Summary of the American Energy Act as introduced by Rep. John Boehner [R-OH8] there's NO mention of anything in your comments...

Opening lines of the summery: American Energy Act - Deep Ocean Energy Resources Act of 2009 - Considers the Draft Proposed Outer Continental Shelf Oil and Gas Leasing Program 2010-2015 released by the Secretary of the Interior to have been approved as final under the Outer Continental Shelf Lands Act (OCSLA) and to be in full compliance with all requirements of applicable laws

I've yet to read the full bill though...

So there may be something added into it regarding what you commented on...

 
At 1/05/2010 8:14 PM, Anonymous Benny The Man said...

http://www.factsaboutethanol.org/2007/10/12/republicans-drunk-on-ethanol-national-review-says/

J-

Here you are.

Bush snorts coke, The Republicans are drunk on ethanol, The Dems smoke pot, and Clinton liked hashish.

 
At 1/05/2010 8:17 PM, Anonymous Benny The Man said...

J-

And here is a link to the hyper-conservative, libertarian CATO think tank, that advocates cutting military outlays in half.

http://www.cato.org/pub_display.php?pub_id=10152

My guess is that the right-wing will ignore this sage advice.

 
At 1/05/2010 11:07 PM, Anonymous Anonymous said...

Remember when we were told what Biofuels were the way to a Green future and an end to Global warming? (google it)

Why do Democrats hate the planet Benny?

 
At 1/05/2010 11:40 PM, Anonymous Lyle said...

Of course presidental candidates have to support this, they have to clear the Iowa caucuses, and this is the benefit Iowa, Illinois,Indiana,Ohio,Kentucky bill. Obama had to support it as well because he wanted support down state Ill. The interesting issue is what was the cost of base diesel in the business cases for the plant?

 
At 1/06/2010 9:47 PM, Blogger juandos said...

Not bad follow through pseudo benny...

You haven't quite followed through on the politics...

It is bizzare...

BTW don't confuse conservatives with Republicans...

Note the dates...

Ethanol mandate sparks Democrats’ opposition
Written By: Marlo Lewis, Jr.
Published In: Environment & Climate News > July 2002


Will Senator Dianne Feinstein (D-California) intercede with Sacramento politicians to protect the California marketplace for pickup trucks, minivans, and SUVs?

Feinstein is not widely known for her devotion to free-market economics and opposition to big-government mandates. Neither is Senator Hillary Rodham Clinton (D-New York). But in the ongoing clash over national energy policy, Feinstein and Clinton have staked out an anti-corporate welfare position that’s to the right of President George W. Bush. (there's more)

Rising Democrat talks up energy independence
Sen. Barack Obama is high on hybrids, ethanol


12:26 p.m. CT, Fri., March. 24, 2006

Recently Obama has moved to the forefront on energy independence. He devoted speeches to it last September and last month, and has accused the oil industry of colluding against biofuels. He's proposed "Health Care for Hybrids" legislation that would offer American automakers funding to help cover their health-care costs in exchange for investments in fuel-efficiency. With Indiana Sen. Dick Lugar (R), he's cosponsored the "Fuel Security and Consumer Choice Act," which would mandate that all vehicles sold in the U.S. be able to run on an ethanol blend as well as gasoline within 10 years, and the "American Fuels Act." (there's more)

Senior Republican on Ag Committee Sees Unintended Consequences of Ethanol

May 12, 2009 @ 9:28 am

Washington, DC: Today Congressman Bob Goodlatte was joined by many other Members of Congress in sending a letter to President Barack Obama, Agriculture Secretary Tom Vilsack and Environment Protection Agency (EPA) Administrator Lisa Jackson urging them not to approve the current request submitted to EPA to increase the ethanol blend in gasoline. Raising the ethanol blend above 10% could result in serious economic consequences that could negatively affect already struggling American consumers. (there's more)

 

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