American Taxpayers Pay in Biofuel "Splash and Dash" Scam


Greenpeace blockading a palm oil tanker last November

TreeHugger noted earlier that dumping of US made and subsidized biofuels was wrecking the UK refinining industry. It gets worse; it is in fact a scam called "splash and dash", taking advantage of the $1 per gallon biofuel subsidy.

1) Bring a tankerload of, say, Malaysian palm oil to the US.
2) add a splash of diesel oil, say 9,000 gallons to 9 million gallons of biofuel, or 0.1%.
3) Tag the whole batch as biofuel, collect nine million bucks, and ship it off to the UK because the US is awash in biodiesel because of the subsidy.

But nobody is doing anything about it because all the soybean growers love the subsidy, and some biodiesel producers are even importing palm oil for American distribution because of it. So much for "energy independence" and "free markets" ::Christian Science Monitor

Tags: Alternative Energy

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