'Splash and Dash' Biofuel Scam Costs Americans Millions, Lawmakers Say

[Duke Newcombe]

Probably old hat to your energy heads here, but...originally reported from Fox News

http://www.peakoil.com/modules.php?name=News&file=article&sid=39773

Splash and Dash--the scheme where by BigOil gorges itself on "green subsidies" for biodiesel by adding a "splash" of regular diesel fuel to imported biodiesel.

'Splash and Dash' Biofuel Scam Costs Americans Millions, Lawmakers Say

CHICAGO — A lawmaker says U.S. taxpayers are being bilked to the tune of millions of dollars by a biofuel subsidy that helps to lower gas prices in Europe, and he's leading the charge to close the apparent loophole.


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.

Duke

[whistle]

1. Last time I filled up at Shell I noticed a sticker on the pump which said "Gasoline products contain

...10% ethanol". Is that good or bad for my car?

[Submariner]

2. I recently read that ethanol does not deliver the combustible horsepower

of gasoline, meaning less miles-per-gallon with an ethanol mixture, but it does not harm the internals of your motor.

[whistle]

3. I remember in the 1970s when ethanol was first introduced it caused all

...sorts of problems for the automobiles of that time dissolving rubber seals, causing engine knock, blow-back, etc.

Have all those problems been addressed by auto makers from say the last ten years of cars?

[Submariner]

4. I really don't know if the problems have been addressed

but I recall the problems you mention, and since I do not read about burnt bearings or dissolving seals in the auto section of the paper anymore, I assume they beat those problems.

[Duke Newcombe]

5. That's "Splash and Dash", folks....

impressions of this royal screwing happening to us and Europe?

Duke