US biodiesel credit going back to drawing board - sources

28 June 2010 22:26  [Source: ICIS news]

HOUSTON (ICIS news)--The US biodiesel industry will have to continue without a blending tax credit until one can be attached to a new legislative bill, sources said on Monday.

The US Senate voted last week against a bill package that would have, along with extending unemployment benefits, reinstated the $1/gal (€0.21/litre) blending tax credit that expired at the end of 2009.

It was the third time Republicans protesting the bill’s cost blocked its passage.

The majority party Democrats will now drop the bill and instead concentrate on other issues, including overhauls to the financial and energy industries, said Regan Lachapelle, spokeswoman for Senate Majority Leader Harry Reid (Democrat-Nevada).

“Until Republicans join us in supporting this legislation … we will not be able to move forward,” Lachapelle said.

That leaves the blending credit in the cold until it can be attached to another piece of draft legislation, said Michael Frohlich, spokesman for the National Biodiesel Board (NBB).

Frohlich said his group was looking for bills they believe would be a priority for lawmakers, such as one currently being discussed to help small businesses.

“Our highest priority is to get the tax credit back in place,” Frohlich said. “We’re going to work to find whatever piece of legislation that looks like it will be fast tracked.”

($1 = €0.81)

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