US Senate votes to extend renewable energy tax credit, eliminates Tyson-ConocoPhillips “cleaner diesel” credit

In Washington, the US Senate passed an $18 billion package to extend the renewable energy tax credit, worth $18 billion per year to wind, solar, geothermal and biomass producers; the bill also includes tax incentives for energy efficiency. The vote comes as the Senate moves to consider a more comprehensive energy bill passed by the House of Representatives last week. The Senate bill eliminated a tax credit, however, for blending oils from animal fats with conventional diesel fuel, an approach used by  Tyson Foods and ConocoPhillips in their joint venture. Tyson said the elimination of the $1 per gallons credit would make the business unprofitable.  ConocoPhillips (COP) and Tyson Foods Inc. (TSN) that promised to generate as much as $175 million in tax credits annually through the production of cleaner-burning diesel fuel.

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