Friday, January 22, 2010

Dan Rees (AZ Biodiesel) on the Biodiesel Tax Incentive

Dan Rees of AZ Biodiesel sent us the following note about the dire situation facing biodiesel producers due to the unexpected non-renewal of the biodiesel tax credit. While there are criticisms that can be levied against the credit program (e.g. at DBI we're unenthusiastic about the virgin soy-based biofuel that can benefit from the credit), the fact is that elimination of the credit will be devastating to local businesses like AZ Biodiesel, Amereco and AZ Green Dining Network that use waste vegetable oils (restaurant grease) to create clean-burning biodiesel. This local waste grease model precisely embodies our vision of sustainable regional biofuels, and a setback for a company like AZ Biodiesel would be a major blow to the development of a sustainable biofuels infrastructure in Arizona. Please give Dan's message careful consideration, and note his call to action near the bottom of his message.
Your Help Is Needed to Reinstate the Biodiesel Tax Incentive

Hi Everyone,

Az BioDiesel is still alive and producing for now without the $1 a gallon federal biodiesel tax credit.

It will hopefully be passed by Feb/March and be retroactive to Jan 1st but there are no guarantees.

For now, we (AZ BioDiesel) can afford to "weather the storm" and wait until the end of January to see if the tax credit will come back anytime soon.

Most plants around the country unfortunately, have closed or severely reduced production as they can't weather a long wait to get the tax 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 came back Jan 20th from their holiday break. Health care was still taking priority to anything else when they started.

Our industry is the victim of congress' focus on health care and not having time to pass the biodiesel tax credit extension which helps biodiesel to be competitively priced to the already subsidized petroleum fuels.

Several senators (Dem & Rep) have sent letters to President 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 concerns me that President 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 seems to care. You'll notice very little press about the loss of the biodiesel tax credit and it's potential to bankrupt this industry even if they get around to passing an 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

With your help, this industry can survive!!!

Dan Rees, AZ BioDiesel

1 comment:

Bruce said...

Dan, I support your cause and hope that congress will very soon renew the Biodiesel Tax Credit and make it retroactive, since the alternative (eliminating the subsidies to the petroleum industry) appears to be impossible. This country needs to reduce its dependency on foreign oil and Biodiesel produced from WVO or non-food stocks is a perfect model for that.