Lawmakers on the U.S. Senate’s Finance Committee will take up a bill that’s supposed to close a loophole that has allowed importers to get millions of dollars in biodiesel subsidies designed to help U.S producers but for biodiesel that doesn’t end up helping American drivers.
This article from TheHill.com has more:
Known as “splash and dash,” the loophole allows 100 percent biodiesel made from soybeans and other commodities and imported from a third country, such as Brazil or Malaysia, to be carried to a U.S. port, where a “splash” of petroleum diesel is added. This allows the importer to qualify for tax credits intended to promote the production and use of U.S. biodiesel.
The ship then quickly leaves the U.S. port to “dash” to another port, usually in Europe, where the subsidized biofuel is unloaded and sold. Tax incentives have created a hugely profitable market for biofuels in Europe, so the companies pocketing the U.S. tax breaks are again rewarded in Europe.
Estimates are that the practice is costing U.S. taxpayers $30 million a year… and that’s supposed to get even worse as it becomes more widespread.
The Europeans aren’t too happy about the loophole, either, and they have even lobbied to change the law as well.
The loophole closure is in the Energy Advancement and Investment Act of 2007, which made its debut in the Finance Committee last week.
AACC International (formerly known as the American Association of Cereal Chemists) is inviting senior food industry executives to a three-day symposium and workshop to discuss the impact the biofuels industry is having on the food market.
Minnesota Governor Tim Pawlenty was among the dignitaries who attended the groundbreaking for a new ethanol plant at Janesville, Minnesota last Friday.
“The start of construction on our Janesville plant marks another important milestone in the growth of US BioEnergy. Our team continues to execute our business plan with great success, keeping the company on track to reach its stated goal of 700 million gallons of production by the end of 2008,” stated Gordon Ommen, US BioEnergy’s CEO. “This plant, which will be our first in Minnesota, also further contributes to the geographic diversity of our facilities. We are particularly proud to have Minnesota Governor Tim Pawlenty, a national leader on the issue of renewable energy, join us for the occasion and to help create new economic opportunities for the greater-Janesville community.”
Aptly named Freedom Fuels, LLC has opened a new biodiesel plant near Mason City, Iowa (see picture from the 
The Organization of the Petroleum Exporting Countries… better known as OPEC… is starting to feel the heat of the increased use of biofuels. And the 
But one group that is pleased is the Renewable Fuels Association. In a statement e-mailed to energy.agwired.com, the group’s President Bob Dinneen praises the legislation, especially the Renewable Fuels Standard (RFS) of 36 billion gallons of renewable fuels, the majority of which must be the next generation such as cellulosic ethanol:
“Low carbon renewable fuels like ethanol are providing our nation a way forward to decreasing our dependence on foreign oil, reducing greenhouse gas emissions and creating new jobs and real economic opportunity. The bill Majority Leader Reid has brought to the floor of the Senate strikes the right balance between building on the progress the U.S. ethanol industry has achieved and providing the incentives necessary to realize the full potential of the industry in the future.
The CEO of the 
The slogan for the Indy Racing League is “I am Indy,” and that’s especially true for ethanol producers who are proud to be a part of this great sport.
“Energy costs have a much greater impact on consumer food costs as they impact every single food product on the shelf,” said Urbanchuk. “Energy is required to produce, process, package and ship each food item. Conversely, corn prices impact just a small segment of the food market as not all products rely on corn for production. While it may be more sensational to lay the blame for rising food costs on corn prices, the facts don’t support that conclusion. By a factor of two-to-one, energy prices are the chief factor determining what American families pay at the grocery store.”
The 
Much of the debate has been centered on the notion that the U.S. will not be able to produce enough corn to satisfy all markets, creating shortages and intensifying competition that will continuously drive the price of corn higher. However, industry officials say advancements in seed, farming and ethanol technologies are allowing American farmers to continue feeding the world while helping to fuel our nation.