Hmmm.... I wonder if this (or some of this) is due to the Spalsh & Dash scam that is milking the US taxpayer.
Thursday, June 19, 2008
MORE “SPLASH AND DASH” BIODIESEL SCAM
International biodiesel producers hustled the U.S. taxpayer for $300 million dollars last year and are likely to do so to the tune of $600 million
this year. They are taking advantage of a loophole in the U.S. subsidy of biodiesel popularly and disdainfully referred to as splash and dash. (See
EU-U.S. BIOFUEL TRADE WAR?)
By adding 9000 gallons of U.S.-produced biodiesel to a 9 million gallon tankerful of foreign biodiesel, the foreign producers earn U.S. tax credits
for the whole 9,009,000 gallons.
Congress cannot get the loophole closed because the National Biodiesel Board wants to sustain the subsidy to U.S. growers. The IRS cannot figure out
which biodiesel tankers coming in and out of U.S. ports are splashing and dashing and which are doing legitimate business.
One thing is clear: More biodiesel is being exported from the U.S. than is being produced in the country so somebody is sending out millions and
millions of gallons of biodiesel represented as U.S. product (and therefore earning hundreds of millions of dollars in U.S. tax credits) that is in
fact foreign-produced biodiesel.
Having earned the U.S. subsidy, the tankers head to Europe where they dump their product at below market prices, thereby undercutting European
producers and driving them out of the market.
Congressman John Shadegg (R-Ariz.): “Taxpayers should be outraged because they are subsidizing foreign consumers of biodiesel…That is insane, and
it’s a ridiculous burden to put on American taxpayers.”
On the other hand, the biodiesel board sees an upside.
Manning Feraci, vice president of federal affairs at the National Biodiesel Board: “We’re creating jobs in rural America. We support over 20,000
jobs. And these are green jobs that are helping to address our energy security needs…”
If the U.S. Congress cannot resolve the matter, the E.U. parliament may. Their Trade Commissioner has already requested an investigation and is
threatening a retaliatory tariff.