Only in Washington, DC would you find the genesis of a headline like that. But this story in The Hill.com says a brouhaha is breaking out in the nation’s capitol over the $1-a-gallon renewable diesel tax credit.
Lobbyists for ConocoPhillips, Tyson, and the Soap and Detergent Association have jumped into the fight over whether oil companies should be able to use the credit. The IRS ruled last month that they should be able to. That prompted Rep. Lloyd Doggett (D-Texas) to introduce a bill to repeal the ruling and narrow the tax break’s scope to what Congress had originally intended.
Tyson got involved because it’s going to provide animal fats to Conoco to produce as much as 175 million gallons of biodiesel… grabbing its share from the credit.
Soap makers are concerned that the cost of animal fat – that they use in making soap – will go up:
In this economic food chain, the soap industry could soon be extinct, according to Dennis Griesing, vice president of government affairs for the Soap and Detergent Association.
“If they start buying up animal fats, it can suck it all up, and we’re dead,” Griesing said.
“We’ve been here forever, and we’re dead.”
Several other livestock producer groups including the National Pork Producers and the National Chicken Council want the more liberal ruling by the IRS.
Interesting how some of the same livestock producers – farmers who have hogs and soybeans – could find themselves on both sides of the issue… making themselves as their own strange political bedfellow.
Biodiesel giant Imperium Renewables is looking to get $345 million in investments in an initial public offering. You might remember Imperium from our previous posts 
It was an afternoon of dodging the drivers of cars, trucks and SUVs. All were eager to find their place at the pumps that offered E10 fuel for just $2.25. Finally, I bumped into IndyCar Driver Scott Sharp. He seemed just as enthusiastic as the consumers. Scott said he thinks the growing use of ethanol is exciting. He said the IndyCar Series deserves a lot of credit for being on the frontier of the ethanol industry. He pointed out that the transition to 100 percent ethanol was a big transformation for the series. Ultimately, Scott said ethanol offers more power in the cars’ engines and better fuel economy. He asked, if IndyCar Drivers can be out running 230 miles an hour on ethanol, “why can’t every car in America?” As Scott dished on the benefits of ethanol, he also freely doled out his autograph:
I made good time at the Gas America promotion and managed to keep a steady pace in tracking down the drivers. My chat with IndyCar Driver Sarah Fisher shed more light on what ethanol is doing for the 
In the consumer frenzy to get discounted ethanol gas at GasAmerica, I managed to flag down IndyCar Driver Jeff Simmons as he pumped fuel and passed out autographs. Jeff said a lot of motorists don’t know where to get ethanol blended fuel. He added that, often, consumers are putting an ethanol blend in their car and don’t even know it. He said EPIC is working to educate motorists about ethanol and where they can get the fuel:
On my first pit stop on the road with Chuck, I caught up with EPIC and IndyCar drivers Jeff Simmons, Scott Sharp, and Sarah Fisher at GasAmerica on LaFayette Road in Indianapolis. EPIC teamed up with GasAmerica and offered E10 fuel, a blend of 10 percent ethanol and 90 percent gasoline to consumers for $2.25 a gallon. They IndyCar drivers manned the pumps alongside EPIC personnel and scribbled autographs for consumers. The special rate was available from 11:30 a.m. to 1:00 p.m, but motorists I talked to said they were lining up around the parking lot as early as 8:00 a.m. David Petros joked that he came out to celebrate his birthday. He said he figured he would save some money and fill up his tank. David added that ethanol is moving the fuel industry in the right direction. Click here to hear more:
Another consumer, Kristian Gibson, said she’s counting on ethanol to be more cost-effective and says she’s hoping that motorists will get a fairer price for fuel as the ethanol industry continues to grow. Kristian says her job requires a lot of travel around Marion County. For her, saving money on tank of gas is worth a couple hours for the wait. Hear what else she has to say about ethanol and its impact on the price of fuel:
It was a long day out at the 
Activities we’re covering here in Indianapolis got started with a pump promotion at 
I’d like to introduce you to Laura McNamara. She’s the newest contributing editor to Domestic Fuel and other ZimmComm New Media news blogs. Laura is with me here in Indianapolis this week helping with our coverage of the Indy 500 and all events related to ethanol.