Sen. Charles Grassley (R-Iowa) renewed his commitment to Congress renewing the biodiesel tax incentive… while he took a shot at the Grocery Manufacturers Association for what he says is a smear campaign by the group against biofuels. Grassley’s comments come on the heels of Tuesday’s vote, when the U.S. Senate came up just eight votes short of cloture to end debate on extending the $1-a-gallon biodiesel tax credit.

Speaking to National Biodiesel Board members at their meeting in Washington, DC today, Grassley stressed just how important biodiesel is for America’s environment, economy and energy security.

“We ought to keep the dollars in the United States rather than send them over to the Arabs to shoot back at us.” In his capacity as the Ranking Member on the Senate Finance Committee, he reiterated his desire to work in a bipartisan manner to pass an extender package that includes the biodiesel tax incentive.

“Lifting the biofuels incentives won’t ease food prices,” Grassley said. “By using less biofuel, we will in fact lift food prices. Who are they trying to kid?”

A bill that would have extended and boosted the producer-incentive tax breaks on a host of alternative energy sources, including wind, solar, biodiesel, clean-coal and other projects to help spur alternative energy development, has been stopped in the U.S. Senate… for the time being.

The measure, sponsored by Sen. Max Baucus (D-Montana), would have extended the $1-a-gallon producer tax incentive for biodiesel but failed when Senate Democrats failed to garner the 60 votes needed to invoke cloture… cutting off debate and allowing a majority vote on the bill. Senate Republicans opposed the measure largely because of some of the tax hikes attached to the bill. But this story from the National Journal says it’s not dead yet:

The measure is in limbo, although Senate Majority Leader Reid can call the bill back up for a vote. Aiding the GOP cause were Democratic absences, including Senate Appropriations Chairman Robert Byrd and Sen. Hillary Rodham Clinton of New York. Those two may be back for votes soon, however, giving Democrats a better chance on a revote as well as giving affected industries more time to lobby. Speaking earlier today at the U.S. Chamber of Commerce, Baucus said he thought cloture could be invoked within a week to 10 days. One lobbyist predicted Republicans would eventually back the bill or risk blame for expiration of the tax breaks, particularly vulnerable incumbents like GOP Sens. John Sununu of New Hampshire and Norm Coleman of Minnesota.

The National Biodiesel Board is welcoming the news of passage of the Renewable Energy and Job Creation Act of 2008 (H.R. 6049)… better known as the the Energy and Tax Extenders Act by the NBB.

It’s no wonder the group considers its final passage the NBB’s top legislative priority as it extends the biodiesel tax incentive, and contains other biodiesel provisions:

The House approval is an important step in allowing the U.S. biodiesel industry to continue to grow America’s energy security with cleaner-burning domestically produced biodiesel,” said Joe Jobe, CEO of the NBB. “Biodiesel is a new green industry that supports over twenty thousand jobs and added over four billion dollars to the U.S. economy last year. The extension of this incentive is an important investment in America’s long-term energy future.”

* Extends biodiesel tax incentive for 1 year through Dec. 31, 2009.
* Provides $1 per gallon incentive for all biodiesel regardless of feedstock.
* Shuts down the abusive “splash and dash” loophole that currently allows foreign produced fuel to enter the U.S, claim the biodiesel tax incentive, and be shipped to a third country for end use.
* Properly defines tax benefits available to co-processed renewable diesel.

As I mentioned in a previous post, the bill… and its tax incentives… are not out of the woods yet. It still faces opposition in the U.S. Senate and a threatened veto from the White House.

The U.S. House today has passed a measure seen as important because it extends renewable energy production and investment tax credits has cleared its latest hurdle. H.R. 6049, the Renewable Energy and Job Creation Act of 2008, got through the U.S. House by a 263-160 margin.

This story posted on RenewableEnergyWorld.com says if it clears Congress, it will mean billions of dollars for alternative energies:

H.R. 6049, is a US $54 billion tax extenders package that contains an extension of the federal production tax credit for wind power (PTC) through December 31, 2009 and contains a new small-wind investment tax credit (ITC). The bill also extends the 30% investment tax credit for solar energy property and qualified fuel cell property, and the 10% investment tax credit for microturbines through the end of 2014. Biomass, geothermal, landfill gas and other technologies receive a three-year extension under the legislation.

Passing through the House doesn’t mean it’s a sure thing to become law. There is already opposition in the U.S. Senate and President Bush has threatened to veto the measure.

Stay tuned… we’ll keep you updated.

The U.S. House Ways and Means Committee has approved the Energy and Tax Extenders Act of 2008, a measure that will extend the biodiesel tax incentive through the end of next year and provides a dollar-per-gallon incentive for all biodiesel regardless of feedstock.

Passage in the committee gained the praise of the National Biodiesel Board:

“I would like to thank Chairman Rangel and the members of the Ways and Means Committee for extending and improving the biodiesel tax incentive,” said Joe Jobe, CEO of the National Biodiesel Board (NBB). “The biodiesel tax incentive is working, and the committee’s decision to support biodiesel will help our industry improve America’s energy independence by displacing foreign petroleum with clean-burning, domestically produced fuel.”

If finally passed by Congress and signed by the president, HR 6049 will also stop what’s known as the “splash and dash” loophole that has been letting fuel produced outside of the U.S. to come into this country and then sent to another country for actual use. That issue has been a bone of contention for many American biodiesel producers and groups for some time.

Canadian Agriculture Minister Gerry Ritz is blasting those opposing a proposed mandate for biofuels in the country.

This story from the Lloydminster (Alberta, Canada) Meridian Booster has more details:

Ritz defended the plan in the House of Commons against criticism from the New Democratic Party, which once supported the use of biofuels but has switched its position. The bill would mandate a five per cent ethanol mixture in gasoline by 2010 and a two per cent mixture of biodiesel by 2012.
“It’s an excellent situation for the environment, it’s a great thing for farmers, and a great thing for rural communities,” said Ritz.

Ritz says this situation doesn’t apply to Canada where the price of basic food commodities actually dropped slightly in February. The government estimates it would take five per cent of total production capacity to produce the three billion litres of ethanol which the plan would require. He says the weather has more impact on Canada’s agricultural output than five per cent.

The article goes on to say that Ritz points out that the United Nations has said there’s enough food. The issue is getting it to where it needs to be at the right time.

Missouri State Treasurer Sarah Steelman, who is also running for the Republican nomination in the state’s gubernatorial race, has labeled Missouri lawmakers “cowards” for changing a law that kept those same lawmakers and their family members from investing their own money in ethanol and biodiesel plants in the state.

This AP story posted on the KY3 (Springfield, MO) web site says Steelman oversees a program that provides state money to assist in investing in biofuel plants and has been barring companies from getting the money if there was even just one investor who is an elected state official, department director or a relative of those people:

The policy outrages some lawmakers who are investors in ethanol and biodiesel plants. Senators voted 21-10 about 2:30 a.m. Wednesday to overturn Steelman’s policy by allowing the incentives so long as state officials own less than 2 percent of the business. The provision is an amendment to a larger tax credit bill and was approved on a head-count vote, avoiding a written record of who voted “yes” or “no” that would have been kept had they taken a roll call.

Some senators say Steelman was out of line by insisting on an unreasonable conflict of interest policy.

Steelman’s actions have ruffled the feathers of many of her fellow Republicans, who invest in the plants. It will be interesting to see how this plays out as she tries to woo those same Republicans to vote for her in her primary race to see who faces presumptive Democratic nominee Jay Nixon for the governor’s seat as incumbent Republican Blunt is not running for re-election.

Minnesota Gov. Tim Pawlenty has signed into law a measure that will increase his state’s biodiesel mandate from 2 percent currently to a whopping 20 percent by 2015.

As you might remember from my post last Friday (May 9th), the standard will be phased in over the next several years and will only be in effect when there’s adequate supplies of biodiesel available. In addition, due to Minnesota’s cold winters, the standard will apply only during the months of April, May, June, July, August, September, and October.

The news was welcomed, obviously, by the National Biodiesel Board:

Ed Hegland, Chairman of the National Biodiesel Board and a Minnesota farmer, praised the legislation’s commitment to fuel quality. “The legislation includes quality assurance and national ASTM fuel specifications,” he said. “We will continue to work with state leaders and stakeholders impacted by this legislation to ensure only quality fuel continues to enter the marketplace.”

The measure also calls for additional feedstocks of algae, waste oils, and tallow, as well as other future feedstocks being researched in the state make up 5 percent of the biodiesel’s content.

The Minnesota Legislature has passed the largest biodiesel mandate in the country, sending the bill to Governor Tim Pawlenty for his signature.

SF 3683 is an omnibus agricluture bill authored by Sen. Jim Vickerman, DFL-Tracy (pictured left) that uses language from original legislation introduced by Rep. Al Juhnke, DFL-Willmar, (pictured right). It moves the biodiesel standard up to 5 percent a year from now, 10 percent by 2012, and finally, a whopping 20 percent by 2015. The measure enforces the higher mandate only during the warmer months of the late spring, summer, and early fall months in the northern state:

The minimum content levels in clauses (3) and (4) [10 percent and 20 percent mandates, respectively] are effective during the months of April, May, June, July, August, September, and October only. The minimum content for the remainder of the year is five percent. However, if the commissioners of agriculture, commerce, and pollution control determine, after consultation with the biodiesel task force and other technical experts, that an American Society for Testing and Materials specification or equivalent federal standard exists for the specified biodiesel blend level in those clauses that adequately addresses technical issues associated with Minnesota’s cold weather and publish a notice in the State Register to that effect, the commissioners may allow the specified biodiesel blend level in those clauses to be effective year-round.

(b) The minimum content levels in paragraph (a), clauses (3) and (4), become effective on the date specified only if the commissioners of agriculture, commerce, and pollution control publish notice in the State Register and provide written notice to the chairs of the house and senate committees with jurisdiction over agriculture, commerce, and transportation policy and finance, at least 270 days prior to the date of each scheduled increase, that all of the following conditions have been met and the state is prepared to move to the next scheduled minimum content level:

Those conditions include that a sufficient amount of biodiesel is available from at least three-fourths U.S. and/or Canadian feedstock to meet the mandate and that 5 percent of the biodiesel produced comes from feedstocks other than agricultural crops, including algae, used cooking oils and animal fats.

A comprehensive energy bill has passed the Florida legislature, and now goes to the governor for an expected signature.

This story from the Orlando (FL) Sun-Sentinel says the measure has provisions specifically addressing renewable energy in the state:

The bill, which addresses Gov. Charlie Crist’s call for policies that combat global warming, is made up of 112 sections that could dramatically increase the state’s investment in renewable energy. The House passed the energy bill unanimously Tuesday and the Senate passed the House bill by a vote of 39 to1 Wednesday.

The bill would allow state regulators to set goals for individual utilities on how much renewable energy they produce and to fine utilities that don’t meet the goals and reward them if they do. Regulators would be required to consider the effect of utility customers’ rates when setting the goals.

Passage gained the praise of Crist:

“I want to thank Senate President Ken Pruitt, House Speaker Marco Rubio, Senator Burt Saunders and Representative Stan Mayfield for their leadership in securing Florida’s green energy future,” Governor Crist said. “Today’s vote signifies a commitment to protecting Florida’s natural beauty and stimulating our economy, as well as reducing our dependence on foreign sources of oil.”

The bill also assures accountability for the renewable energy with a state commission studying whether green fuels such as biodiesel, wind, and solar provide returns for the state’s investment in them.