Ding, Dong, The Biodiesel Tax Credit’s Dead!

[Clay]

Roboto posted this in another thread but I wanted to put it closer to the front to be found.

http://utahbiodieselsupply.com/blog/archives/934

[ridiculously_necessary]

what is ($/cwt)? i dont know this abbreviation, weight?

[Mdub707]

Awesome... hopefully it lasts for a while now.

[Clay]

Originally Posted by ridiculously_necessary

what is ($/cwt)? i dont know this abbreviation, weight?

Cwt = hundred weight.

[bamboo]

Cool article thanks for posting.
So how many of you "compete" for the oil you collect?
for example I have 1 source 10miles away, but you could say its a first come first serve basis,
and at the time I found it kinda annoying that I might run in to jimbob collecting oil, as we roll up together who's to decide who gets it first? or needs it more?

But reading the article makes me think, jimbob gets it first time we both meet up and I get it next time, lot less of a hassle then it might seem vs dealing with something else, or Paying for it...

[hokiesax]

I just lost two restaurants a few weeks ago. I had been collecting their oil for free for the past 6 months and the professional oil collector offered them $0.10/gal. I said I would match that but they said they had already signed a contract. Sucks cause that was probably 25% of my weekly collection.

Before that I haven't had to compete...but I just keep asking restaurants until I find the ones that will give it for free.

[Pogo1616]

The rise and fall of WVO prices concurrent with the subsidy is 100% consistent with economic theory regarding government subsidy programs. It's as predictable as is the motion of a billiard ball based on the laws of physics. Too bad so many of our politicians and the media are economic jackasses.

It will take a while for the effect of the subsidy's demise to show up for collections, however, because of some of the contracts that are in place. But -- eventually it should mean less competition for the grease.

[skyskijason]

Originally Posted by hokiesax

I just lost two restaurants a few weeks ago. I had been collecting their oil for free for the past 6 months and the professional oil collector offered them $0.10/gal. I said I would match that but they said they had already signed a contract. Sucks cause that was probably 25% of my weekly collection.

Before that I haven't had to compete...but I just keep asking restaurants until I find the ones that will give it for free.

I get tickled every time I hear someone say they aren't getting oil due to a 'contract' in place at the source. I have seen a couple of said contracts now and I promise, there is nothing obligating them to supply any minimum amount of oil. They can sell or give that oil to anyone they want! You think if the restaurant went out of business they would have some obligation to the renderer? Those contracts are a joke, all it means is if restaurant puts out oil - they will get paid for it. No penalty for not producing oil - except maybe removal of their dumpster.

2 of my staple sources get paid for their oil. I happily collect all of the stuff from the fryers (they put it in my drums) and they put the stuff from the grill, smoker, etc in the dumpster. I contribute to the dumpster as well! The fact remains, MY BUSINESS alone is worth considerable more than the tiny checks they get from the renderer - my friendships are what seal the deal though.

If I had to 'compete', I would be creative!! Consider paying for an ad spot at the little league field or offer to distribute menus or flyers occasionally. Don't be afraid to ask 'WHAT CAN I DO TO HELP YOUR BUSINESS. The other guys ain't doing a darned thing...

Now y'all get out there and secure some sources! Use buzz phrases like 'keep it LOCAL', 'we are a GREEN option', 'mutually beneficial relationship', etc.

[hokiesax]

I thought with the end of this tax credit the price of oil would go down. It keeps going up in my area! In the past 6 months I've gone from paying $0.00-0.10 per gallon to $1.00 per gallon! And that price is the owner doing a "favor" to me as the professional renderers were offering $1.50!! There is one company in particular that is relentless around here and stealing up all the sources. I don't see what they could be doing with the oil as the market value keeps going down.

[Memphis10]

I thought I heard somewhere that they re instated the tax credit, I'm with you, the price just seems to keep going up and up. The little small restaurants, 40-60 gal/ month seem to be the ticket for me.