Originally posted by: EXman
Originally posted by: CPA
Seems like they only care about keeping their coffers filled with money from the soybean industry:
Dems wanting to remove a tax credit that would help the fledgling animal fat to diesel fuel industry. The National Biodiesel Board doesn't like it so they are lobbying (ie paying off) the Dems in Congress to change the language of the IRS/Treasury interpreted rule.
So, Dems, do you want alternative fuels or not?
No they want Pork in a bill or they aren't even voting for thier own bill!
Not like the repubs MO was different it just was a little less overt.
Below is from my Oil thread from last week.
Same shenaigans just different bosses in control.
Actually it's the same bosses, they just change the label on their hats.
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This was not the original intent of the tax credit. Conoco |lobbied" Republicans to get the tax credit applied to them with this.
4-16-2007
ConocoPhillips and Tyson Foods get $1 per gal taxpayer money to make diesel from animal fat using existing refineries
HOUSTON - Oil major ConocoPhillips and Tyson Foods Inc., the world's largest meat producer, said Monday they're teaming up to produce and market diesel fuel for U.S. vehicles using beef, pork and poultry fat.
The companies said they've collaborated over the past year on ways to combine Tyson's expertise in protein chemistry and production with ConocoPhillips' processing and marketing knowledge to introduce a renewable diesel fuel with lower carbon emissions than conventional fuels.
But some renewable-fuel advocates say ConocoPhillips will be able to take unfair advantage of a tax credit designed to create new refining capacity for clean-burning fuels, even though they'll be using existing refineries.
ConocoPhillips said it planned to spend about $100 million over several years to produce the fuel, Chairman and Chief Executive Jim Mulva said at a news conference. It hopes to introduce the fuel at gas stations in the U.S. Midwest in the fourth quarter of this year.
Tyson said it will begin preprocessing animal fat at some of its North American rendering plants this summer. Tyson President and CEO Richard Bond said his company's potential investment would likely be less than that of ConocoPhillips.
The oil company and Tyson, based in Springdale, Ark., said the finished product will be renewable diesel fuel mixtures that meet all federal standards for ultra-low-sulfur diesel. They expect to ramp up production over the next couple of years to as much as 175 million gallons a year ? which Mulva said would amount to about 3 percent of ConocoPhillips' total U.S. diesel production.
"That doesn't sound like much, but it's very significant," Mulva said. "In a tight market, every incremental increase helps improve supply availability and reduces retail-price pressure."
The National Biodiesel Board, a trade association, noted Monday that ConocoPhillips and other large oil companies had successfully lobbied the Treasury Department to allow them to take advantage of a renewable diesel tax credit. That 2005 provision allows companies that create a type of renewable fuel from animal carcasses and other food wastes to qualify for a dollar-per-gallon tax incentive.
The board said the idea was to stimulate expansion of the technology needed to create that fuel and encourage development of new refining capacity. Two weeks ago, the trade association said, the Treasury Department expanded the provision so that companies like ConocoPhillips can produce diesel fuel from animal fats and vegetable oils using existing refining capabilities.
"The broader interpretation creates a tax loophole for large integrated refineries to subsidize to the tune of $1 per gallon their existing refinery capacity in a way that most likely will not result in new refinery capacity," said Joe Jobe, CEO of the National Biodiesel Board.
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"That doesn't sound like much, but it's very significant," Mulva said. "In a tight market, every incremental increase helps improve supply availability and reduces retail-price pressure."
How many people actually believe diesel price would go down and "supply" availability up because this?
Raise hands
I'll add to poll just for this.
I don't believe for a millisecond prices would come down, in fact I would bet that they would use this as an excuse somehow for raising the price.
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