<HTML><BODY style="word-wrap: break-word; -khtml-nbsp-mode: space; -khtml-line-break: after-white-space; ">It was brought to my attention after my last post that there are in fact federal and Oklahoma state tax credits for Biodiesel. The federal Biodiesel tax credit was signed into law in October 2004 and in 2005 was extended through 2008. It provides $1.00 per gallon tax credits for Agri-Biodiesel. Agri-Biodiesel is defined as diesel fuel made from virgin oils derived from agricultural commodities (corn, wheat, rice, cotton, soybeans) and animal fats. There is also a $.50 per gallon tax credit for Biodiesel made from non-commodity agricultural products and animal fats. There are also tax credits for renewable biodiesel and for biodiesel made by small producers. In June, Ok. Gov. Brad Henry signed a bill into law that provides state tax credits of $.20 per gallon for biodiesel producers.<DIV><BR class="khtml-block-placeholder"></DIV><DIV><DIV>Given these substantial tax incentives for biodiesel, which are on-par with tax incentives for ethanol, the important question is why hasn't biodiesel received the same sort of attention as ethanol?</DIV><DIV><BR class="khtml-block-placeholder"></DIV><DIV>I believe the answer has to do with politics, corn, and the existing unleaded infrastructure.</DIV><DIV><BR class="khtml-block-placeholder"></DIV><DIV>It is the policy of the Bush administration and the USDA to promote ethanol as the alternative fuel with the most potential to reduce dependency of foreign oil. The result is that b<SPAN style="">etween 2000 and 2007, U.S. ethanol production more than tripled from 1.7 billion gallons in 2000 to 6.1 billion gallons in July 2007. Annual ethanol production capacity is predicted to expand to 9.3 billion gallons in 2008 and reach 12.1 billion gallons by 2012.<SPAN style="mso-spacerun: yes"> </SPAN>The number of U.S. ethanol refineries increased from 54 in the 2000 to 119 located in 19 states in July 2007. There are currently 85 ethanol plants expanding or under construction and another 330 ethanol plants reported to be on the drawing board. </SPAN></DIV><DIV><BR class="khtml-block-placeholder"></DIV><DIV>The result has been a dramatic increase in the price of corn from $1.85 a bushel in 2005 to over $4.00 a bushel this summer. This has brought boom times to the corn belt where farmers and politicians have a material interest in maintaining ethanol as the biofuel of choice. </DIV><DIV><BR class="khtml-block-placeholder"></DIV><DIV>The fact that the ethanol, blended with regular gas, is compatible with existing unleaded infrastructure, pumps and cars, makes it attractive as an alternative fuel source.</DIV><DIV><BR class="khtml-block-placeholder"></DIV><DIV>Corn based ethanol has its drawbacks, namely ethanol's low ratio of energy input to energy output, higher food costs resulting from higher corn costs, increased corn plantings displacing other crops, and land degradation as marginal land is put into corn production to take advantage of high prices.</DIV><DIV><BR class="khtml-block-placeholder"></DIV><DIV>It seems that ethanol will be the dominant alternative fuel source for the near future, but efforts should continue to be made to find more sustainable and efficient alternative fuel solutions, expanded biodiesel usage being one. </DIV><DIV><BR class="khtml-block-placeholder"></DIV><DIV>-Sam</DIV><DIV><BR class="khtml-block-placeholder"></DIV><DIV> </DIV><DIV><BR class="khtml-block-placeholder"></DIV><DIV><BR class="khtml-block-placeholder"></DIV><DIV> </DIV><DIV><BR class="khtml-block-placeholder"></DIV><DIV><BR><DIV><DIV>On Aug 11, 2007, at 1:27 PM, <A href="mailto:elizjoh@aol.com">elizjoh@aol.com</A> wrote:</DIV><BR class="Apple-interchange-newline"><BLOCKQUOTE type="cite"><DIV> The below explanation regarding "farm state lobbyists" brought to mind the question -- who has the most to gain from this alternative use? Do they have any ongoing lobbying efforts to join with this focus? Jo <BR> </DIV> <DIV> <BR> </DIV> <DIV> <BR> </DIV> -----Original Message-----<BR> From: Stalcup, Samuel R. <<A href="mailto:samuel@ou.edu">samuel@ou.edu</A>><BR> To: Sustainability Issues in Oklahoma <<A href="mailto:ok-sus@lists.oksustainability.org">ok-sus@lists.oksustainability.org</A>><BR> Sent: Fri, 10 Aug 2007 5:05 pm<BR> Subject: RE: [ok-sus] Re: [OSNBoard] RE: Rush to Ethanol<BR> <BR> <DIV id="AOLMsgPart_0_d2aa4657-8ae0-4740-bfa1-db3595cd8975" style="margin: 0px; font-family: Tahoma,Verdana,Arial,Sans-Serif; font-size: 12px; color: rgb(0, 0, 0); background-color: rgb(255, 255, 255);"> <PRE style="font-size: 9pt;"><TT>The major reasons, at least at the federal level, for the current ethanol boom <BR>
are the $.51 per gallon tax credit received by ethanol blenders, the fact that <BR>
many states require their gasoline to be blended with 10% ethanol (E-10 gas), <BR>
and that the promotion of ethanol is major part of the Bush administration and <BR>
USDA agendas, not to mention that many, many farm state lobbyists and <BR>
Congressman are pushing hard for ethanol.<BR>
<BR>
Biodiesel lacks subsidies and the same type of high level political support. <BR>
Thus we hear less about it.<BR>
<BR>
This is yet another area in which Oklahoma could become a national trend-setter <BR>
if only it would muster the will to do so.<BR>
<BR>
A state tax-credit for biodiesel entrepreneurs like Todd Stephens is a good <BR>
place to start.<BR>
<BR>
<BR>
-Sam<BR>
<BR>
________________________________________<BR>
From: <A href="mailto:ok-sus-bounces@lists.oksustainability.org">ok-sus-bounces@lists.oksustainability.org</A> [<A href="mailto:ok-sus-bounces@lists.oksustainability.org">ok-sus-bounces@lists.oksustainability.org</A>] <BR>
On Behalf Of Sylvia Pratt [<A href="mailto:sjpratt@poncacity.net">sjpratt@poncacity.net</A>]<BR>
Sent: Thursday, August 09, 2007 12:29 PM<BR>
To: Sustainability Issues in Oklahoma<BR>
Subject: Re: [ok-sus] Re: [OSNBoard] RE: Rush to Ethanol<BR>
<BR>
Why don't you try to get an Oklahoma celebrity onboard, as Willie Nelson has <BR>
done. Toby Keith, or Switzer, or somebody venerated by the rednecks?<BR>
----- Original Message -----<BR>
From: Todd Stephens<<A href="mailto:bioarc@gmail.com?">mailto:bioarc@gmail.com</A>><BR>
To: Seneca Scott<<A href="mailto:chiefseneca@hotmail.com?">mailto:chiefseneca@hotmail.com</A>><BR>
Cc: <A href="mailto:jessie@newenergychoices.org">jessie@newenergychoices.org</A><<A href="mailto:jessie@newenergychoices.org?">mailto:jessie@newenergychoices.org</A>> ; <BR>
<A href="mailto:osnboard@lists.oksustainability.org">osnboard@lists.oksustainability.org</A><<A href="mailto:osnboard@lists.oksustainability.org?">mailto:osnboard@lists.oksustainability.org</A>> <BR>
; <A href="mailto:ok-sus@lists.oksustainability.org">ok-sus@lists.oksustainability.org</A><<A href="mailto:ok-sus@lists.oksustainability.org?">mailto:ok-sus@lists.oksustainability.org</A>><BR>
Sent: Thursday, August 09, 2007 10:23 AM<BR>
Subject: [ok-sus] Re: [OSNBoard] RE: Rush to Ethanol<BR>
<BR>
Jessie,<BR>
<BR>
Todd Stephens here. I'm an OSN Board member and the founder of Tulsa Biofuels <BR>
LLC, a small biofuels start-up that produces biodiesel from waste cooking oil in <BR>
Tulsa. I found your post interesting and informative however I'm curious as to <BR>
why biodiesel is not discussed more often in the biofuels arena, especially in <BR>
Oklahoma.<BR>
<BR>
Biodiesel helps to clean up the dirtiest of on-road fuels (it's about 70% <BR>
cleaner than regular diesel which is terribly dirty), it has a much higher <BR>
energy exchange than ethanol (1:3.5 versus 1:1.2), requires no new <BR>
infrastructure (whereas ethanol requires new pipelines, new holding tanks and a <BR>
special engine), can be made from a plethora of renewable resources (from waste <BR>
products to soybeans to algae) and the technology utilized in the biodiesel <BR>
production process is much simpler and more benign than the technology used in <BR>
the ethanol industry.<BR>
<BR>
Any ideas why biodiesel isn't getting the state support or exposure that ethanol <BR>
is?<BR>
<BR>
Sincerely,<BR>
The red-headed stepchild in the Oklahoma biofuels industry,<BR>
Todd Stephens<BR>
OSN Board Member<BR>
Founder, Tulsa Biofuels, LLC<BR>
<A href="mailto:tms@tulsabiofuels.com">tms@tulsabiofuels.com</A><<A href="mailto:tms@tulsabiofuels.com?">mailto:tms@tulsabiofuels.com</A>><BR>
(918) 810-5109<BR>
<BR>
<BR>
<BR>
On 8/8/07, Seneca Scott < <A href="mailto:chiefseneca@hotmail.com">chiefseneca@hotmail.com</A><<A href="mailto:chiefseneca@hotmail.com?">mailto:chiefseneca@hotmail.com</A>>> <BR>
wrote:<BR>
<BR>
Thanks, Jessie! I'll be sure and pass this along to the OSN listserv members and <BR>
OSN directors. We appreciate the information from Network for New Energy <BR>
Choices. Keep in touch.<BR>
<BR>
Mr. Seneca Scott<BR>
Trivestco Energy, Operations Manager<BR>
Oklahoma Sustainability Network, President<BR>
3271 E. 2nd St.<BR>
Tulsa, OK 74104<BR>
918-576-9111<BR>
<A href="mailto:chiefseneca@hotmail.com">chiefseneca@hotmail.com</A><<A href="mailto:chiefseneca@hotmail.com?">mailto:chiefseneca@hotmail.com</A>><BR>
<BR>
________________________________<BR>
From: "Jessie Carr" <<A href="mailto:jessie@newenergychoices.org">jessie@newenergychoices.org</A> <<A href="mailto:jessie@newenergychoices.org?">mailto:jessie@newenergychoices.org</A>> <BR>
><BR>
To: <<A href="mailto:info@oksustainability.org">info@oksustainability.org</A><<A href="mailto:info@oksustainability.org?">mailto:info@oksustainability.org</A>>><BR>
Subject: Rush to Ethanol<BR>
Date: Wed, 8 Aug 2007 12:57:14 -0400<BR>
<BR>
<BR>
Greetings,<BR>
<BR>
<BR>
<BR>
The debate over biofuels is heating up and we have been getting lots of <BR>
responses - from press, industry and activists - to our recent report The Rush <BR>
to Ethanol: Not All Biofuels Are Created Equal<<A href="https://webmail.manhattan.edu/imp/RushToEthanol.pdf" target="_blank">https://webmail.manhattan.edu/imp/RushToEthanol.pdf</A>>. <BR>
We want to keep the pressure on policy makers and the ethanol industry to take <BR>
measures to ensure that biofuels are just one part of a larger transition to a <BR>
sustainable transportation system. Decision makers at the state and local level <BR>
have a considerable amount of power over regional energy economy and we want <BR>
them to act now to protect people, wildlife and the land from a headlong rush to <BR>
ethanol with disastrous consequences for local ecology and economy. That's why <BR>
we developed we developed a States' Guide for Sustainable Biofuels Production <BR>
and a Sustainable Transportation Model<<A href="http://www.newenergychoices.org/uploads/states_guide.pdf" target="_blank">http://www.newenergychoices.org/uploads/states_guide.pdf</A>>.<BR>
<BR>
<BR>
<BR>
Please keep in touch, let us know developments in your region and visit our <BR>
blog<<A href="http://www.newenergychoices.org/" target="_blank">http://www.newenergychoices.org/</A>> for updates to this and other clean <BR>
energy issues.<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
Best,<BR>
<BR>
<BR>
<BR>
Jessie Carr<BR>
<BR>
<BR>
<BR>
Outreach Coordinator<BR>
<BR>
Network for New Energy Choices<BR>
<BR>
Ph: 212-991-1061<BR>
<BR>
Email: <A href="mailto:jessie@newenergychoices.org">jessie@newenergychoices.org</A><<A href="mailto:jessie@newenergychoices.org?">mailto:jessie@newenergychoices.org</A>><BR>
<BR>
<A href="http://www.newenergychoices.org%3Chttp://www.newenergychoices.org/" target="_blank">www.newenergychoices.org<http://www.newenergychoices.org/</A>><BR>
<BR>
<BR>
<BR>
<BR>
<BR>
Jessie Carr<BR>
<BR>
Outreach Coordinator<BR>
<BR>
Network for New Energy Choices<BR>
<BR>
Ph: 212-991-1061<BR>
<BR>
Fax: 212-926-9160<BR>
<BR>
<BR>
<BR>
<BR>
________________________________<BR>
More photos, more messages, more storage—get 2GB with Windows Live Hotmail. <BR>
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