US subsidizing EUROPE’s biodiesel imports
Take a look at this and tell me this isn’t the US Government helping subsidize Europe’s self imposed high oil prices.
The scam — as Shadegg and others call it — is known as “splash and dash.” It stems from an existing $1 subsidy for every gallon of biodiesel fuel blended with regular diesel in the United States.
Here’s how it works:
Biodiesel is produced abroad using South American sugar cane or Asian palm oil and shipped to the United States, where it’s blended with just a “splash” of regular diesel.
A typical tanker-load of about 9 million gallons of biodiesel requires just 9,000 gallons of American diesel to make it qualify for the subsidy. But every gallon in the shipment garners a buck. The ship then makes a “dash” for Europe, where its fuel is sold below market rates.
That means each tanker-load that makes the dash nets importers about $9 million dollars in tax credits from the IRS. Lawmakers have estimated its cost to Americans at tens — or even hundreds — of millions each year.
And while Congress and the National Biodiesel Board say they know the loophole is being exploited — as America is exporting much more biofuel than it’s producing — they’ve been unable to identify the guilty companies.
“Ultimately when you dig down it gets to the point that you would have to have access to IRS information,” said Manning Feraci, vice president of federal affairs at the National Biodiesel Board. “Taxpayer information is confidential, so we can’t have access to it.”
Luckily, Europe is mad about this too because it is hurting European biofuel producers and they demanding that the US stop this subsidy. Rep. John Shadeg, R-AZ is leading the charge to close this loophole. Hopefully he succeeds because the thought of us subsidizing another countries energy when our prices are outrageously high is completely asinine.




