Lobbyists for the European Union and the National Biodiesel Board have been working Congress hard over the issue of tax credits.
This article from The Hill.com says EU officials say the tax credit just allows American biodiesel to be dumped in Europe while the NBB argues the incentives are needed to support the alternative fuel:
At issue are increased U.S. exports of biodiesel to Europe, which EU officials argue are displacing European crops that would otherwise be converted into biodiesehttps://energy.agwired.com/wp-admin/upload.php?style=inline&tab=upload&action=&ID=&post_id=-1194925751&paged
Uploadl in European countries. EU Trade Commissioner Peter Mandelson raised the issue with Senate Agriculture Committee Chairman Tom Harkin (D-Iowa) and U.S. Trade Representative Susan Schwab during his visit last week, according to an EU official.
One of Mandelson’s arguments is that the current policy cheats U.S. taxpayers, whom the EU argues are subsidizing biodiesel exports to Europe. EU officials say these subsidies do nothing to lower U.S. dependence on foreign oil — one of the initial justifications for providing the U.S. industry with tax credits — since the biodiesel is just sent to Europe.
The NBB, however, argues that the rise in U.S. exports simply reflects the higher demand for biodiesel in the EU, where policymakers are trying to increase the percentage of biodiesel as a proportion of total diesel fuel use to 10 percent. That would be huge in Europe, where about 50 percent of the passenger-car fuel used for transportation comes from diesel.
Denying the tax credit to biodiesel that is exported would close the free flow of trade, according to the NBB, endangering a U.S. industry that has made tremendous strides in recent years. NBB CEO Joe Jobe argues this would create a “serious disincentive” for the U.S. industry.
European biodiesel producers say much of the biodiesel sent to Europe is made entirely from U.S. crops, and U.S. producers add a splash of petroleum to to qualify for the tax biodiesel blending tax credit.
The NBB is fighting a similar measure that is allowing biodiesel producers from Indonesia and Malaysia ship biodiesel to a U.S. port for a “splash” of petroleum, at which point the blenders’ tax credit is pocketed and the finished product dashes off to Europe. The Europeans aren’t happy about this practice, either, but see the American biodiesel as a bigger threat.


Ethanol producers say they are prepared for the challenges as the business expands and are ready to adapt quickly. Producers, plant designers and water engineers are all teaming up to try to reduce water consumption, says Matt Hartwig, a spokesman for the
Chrysler has handed out a $150,000 grant to alternative energy incubator company NextEnergy.
Kearney, Nebraska’s Tri-City Storm hockey team is planning to host an “Ethanol Awareness Night” in conjunction with a February home game, according to the 
Martin Tobias, Imperium’s chief executive officer, said he was “pleased that we have a way to put our process byproducts to good use — especially with a company that shares our ideals and is building products that are environmentally friendly.”
Maryland’s State Highway Administration will be moving those white snowdrifts off the gray concrete of the state’s roads running on the green fuel of biodiesel.
Farm implement maker New Holland announced today that it supports the use of 100 percent biodiesel in all equipment with New Holland-manufactured diesel engines. That would include electronic injection engines with common rail technology.
The Missouri Soybean Association (MSA) is applauding the House of Representatives’ 361-54 override vote and the Senate’s 79-14 vote:
The statement was issued jointly by Gordon Quaiattini, President, Canadian Renewable Fuels Association, Canada; Robert Vierhout, Secretary General, European Bioethanol Fuel Association (eBIO), European Union; Bob Dinneen, President, Renewable Fuels Association (RFA), United States; and Marcos Jank, President, Sugar Cane Industry Association (UNICA), Brazil.