The Louis Dreyfus Biodiesel plant in Claypool currently doesn't qualify for federal subsidies and the community is being asked to give its input.
The plant is located in the heart of Kosciusko County, but since the parent company is based in Geneva, Switzerland, the United State sDepartment of Agriculture will not allow the company to recieve any of the $300 million available in its Biofuel Payment Program.
According to recent changes in federal agriculture policy, companies must be at least 51-percent US owned to receive subsidies.County Commissioner Bob Conley, who is the commissioner of the southern district where the plant is located, said if there was a quid pro quo agreement before the plant moved in to receive the funds, that agreement should be honored.
"It's all about being fair," said Conley.
Conley also noted that the company pays taxes as well as provides jobs in the county.
"Without the subsidy, it may jeopardize the future of the plant," said Conley.
The USDA program still has some $270 million in subsidies to distribute over the next two years.
Calls to both the local and corporate offices of Louis Dreyfus by the Times-Union weren't returned as of deadline this morning.
A registered lobbyist for Louis Dreyfus in Washington DC, who spoke on condition of anonymity, said the rule change really only affects the Claypool plant.
"This is a separate issue with the tax credit," he said. "Congress is very slow to extend tax credits. It has most of the industry shut down."
Employment is not currently affected at the Claypool plant.
"The rule is authorized for three more years," said the spokesperson. "We're the only major plant we know of that's affected by this," he said.
"We are the major plant here. We've been singled out in a sense."
There is a 30-day comment period that ends May 17. Comment on the Web at;
www.regulations.gov
Comment by mail at:
USDA, Stop 0742
1400 Independence Ave. SW.
Washington D.C. 20250-0742.
"Policy makers need to make a distinction between foreign-owned, foreign located and foreign owned," said the spokesperson. "We hire US employees, we're subject to US tax, laws and regulations and we use domestic products."
