Where can we find the actual subsidies for american biodiesel production? A significant cash credit is available to US producers from the USDA if they are registered with the EPA. This is assuming that the EPA will allow you to register as a commercial producer. I tried to do this last October, 2001 and the EPA got back to me in February 2002 saying that not only would they not let me register as a commercial biodiesel producer, but that the fine for being in production without registering is up to $25,000 per day and that I should never have started to produce biodiesel in the first place and the fine could be retroactive to the day that I filed for registration.
Nevertheless, there are USDA subsidies for the commercial production of biodiesel. Just a few weeks ago, World Energy Corp., the largest producer of biodiesel in this country, asked for help from this website and from many others in asking for petitions to the government, USDA, to stop a republican effort to reduce existing subsidies to the producers of biodiesel. This subsidy is called a producer price support, among other names, and must be very substantial. World Energy Corp. reported that the realignment of subsidies would cause their company to have to raise prices by about 90¢ per gallon. That means that retail biodiesel would increase by more than $1 per gallon. I believe there are two types of subsidies. First is a large payment, over $1 per gallon, as a one time payment for bringing on new production facilities to make biodiesel. That is measured on an annual basis. For example, if you start a new processing line of, say, 100,000 gallons per year, the check from the government would be in excess of $100,000. The second type of subsidy, at much less than $1 per gallon, is a subsidy for each gallon of biodiesel produced. I'm told that the subsidy for the production of biodiesel from virgin soybean oil is far larger than the subsidy for biodiesel made from recycled yellow grease, or any other source. What kind of sense does that make? Just shows you who has the biggest lobby in the area, ADM. Perhaps some of the realignment of subsidies recently decided upon by the republicans was to readjust the money for all biodiesel sources being more in align with each other. Maybe not. So, where is this subsidy information available? Its public policy, afterall, and must be accessible. Anyone know? Tom Leue Yellow Biodiesel www.yellowbiodiesel.com In a message dated 11/13/02 7:17:56 PM, [EMAIL PROTECTED] writes: << Useful tool to calculate subsidy payments for oilseeds: http://www.ncga.com/farmbill/calculator/calculator.htm >> ------------------------ Yahoo! Groups Sponsor ---------------------~--> Share the magic of Harry Potter with Yahoo! Messenger http://us.click.yahoo.com/4Q_cgB/JmBFAA/46VHAA/9bTolB/TM ---------------------------------------------------------------------~-> Biofuels at Journey to Forever http://journeytoforever.org/biofuel.html Biofuel at WebConX http://webconx.green-trust.org/2000/biofuel/biofuel.htm List messages are archived at the Info-Archive at NNYTech: http://archive.nnytech.net/ To unsubscribe from this group, send an email to: [EMAIL PROTECTED] Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
