Renewable Fuel Standard (RFS):

The Environmental Protection Agency's delays in setting the 2021 Renewable Fuel Standard obligations create uncertainty for the biodiesel and renewable diesel industry. While the agency provided compliance flexibility to oil refineries, it created addtional uncertainty for biofuel producers by indicating to reporters that it would retroactively slash RFS volumes for both 2020 and 2021.

Please contact your Representative and Senators and update them on the situation through this form. As the 117th Congress considers legislative options to address environmental and economic issues, this is an opportunity to let lawmakers know that support for the RFS helps biodiesel and renewable diesel producers.

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As our members and industry supporters communicate with Washington policy makers, the media, and the public, NBB provides the resources to the right and works with them to amplify these points:

  • EPA knows that RFS deadlines are important to all program stakeholders. Biodiesel and renewable diesel producers particularly rely on market signals from annual rules.
  • The missed deadlines create additional uncertainty for biodiesel and renewable diesel producers, who have set goals for continued growth through 2030.
  • EPA destroyed demand for hundreds of millions of gallons of biodiesel over the past several years by abusing small refinery exemptions. EPA has many options to repair the damage to the biodiesel industry and is required to do so.
  • Each small refinery exemption can eliminate demand for an entire biodiesel facility’s annual production. A “small” oil refinery can produce up to 3 million gallons of fuel per day. Its annual RFS obligation would include 20 million gallons of biodiesel, the amount some small plants produce in a year.
  • A U.S. Court of Appeals decision from January 2020 limited EPA’s authority to grant small refinery exemptions. EPA should immediately apply the court’s ruling to all pending and future exemptions.
  • EPA also ignored a 2017 U.S. Court of Appeals order to reconsider a waiver of 500 million gallons of renewable fuel. It is long past time for the agency to address the shortfall.

 


Focus on RFS News




NBB, Biodiesel Producers Ask EPA to Raise RFS Volumes and Ensure They Are Met

Jul 18, 2018, 8:07 AM
EPA should set the 2020 Biomass-based Diesel obligation at 2.8 billion gallons and appropriately account for small refinery exemptions, NBB says

NEWS
FOR IMMEDIATE RELEASE

Contact: Paul Winters
202-359-6571
pwinters@biodiesel.org 

YPSILANTI, MI – Today, executives from the National Biodiesel Board (NBB) and its member companies are testifying at the Environmental Protection Agency’s (EPA) Public Hearing for Proposed Renewable Fuel Standards (RFS) for 2019 and Biomass-Based Diesel Volume for 2020. NBB and its members ask EPA to set the 2020 Biomass-based Diesel volume at 2.8 billion gallons, based on the agency’s own analysis in the proposed rule showing that volume is achievable next year. The agency must also reduce the uncertainty it has caused by issuing retroactive small refiner hardship exemptions, the industry told EPA staff.

Donnell Rehagen, CEO of the National Biodiesel Board (NBB), testified, “To provide the certainty that the biodiesel industry needs, EPA should raise the 2020 volume for biomass-based diesel to at least 2.8 billion gallons. That number better aligns with the goals that Congress set for the RFS program. And it will better fulfill the promise of the RFS program.”

Kurt Kovarik, Vice President of Federal Affairs with NBB added, “I appreciate the agency’s recognition that the biodiesel industry has proven year after year that it can deliver increasing volumes. At the same time, I would like to emphasize that the volumes EPA finalizes will be meaningless, if the agency continues to retroactively reduce them through refinery exemptions.”

Kent Engelbrecht, Biodiesel Trade Manager at Archer Daniels Midland and NBB Board Chairman, stated, “There are many positive elements in this proposal for which we applaud EPA. But these are rendered meaningless unless EPA accounts for waived gallons to make sure the RVO’s are real numbers.”

EPA has estimated that the small refinery hardship exemptions it retroactively granted to refiners reduced the 2016 and 2017 RVOs by a combined 2.25 billion RINs. NBB estimates the 2016 and 2017 exemptions reduced demand for biodiesel by more than 300 million gallons. And since every 100 million gallons of increased biodiesel production supports some 3,200 jobs, NBB estimates the small refinery hardship exemptions puts 9,600 jobs in jeopardy.

Tom Brooks, General Manager of Western Dubuque Biodiesel and chair of the Iowa Biodiesel Board, noted that the 300 million gallon loss of biodiesel demand happens to equal Iowa’s 2017 total production almost exactly. “The impact of these exemptions is like wiping out a year’s worth of production in the nation’s top biodiesel-producing state,” he said.

Made from an increasingly diverse mix of resources such as recycled cooking oil, soybean oil and animal fats, biodiesel is a renewable, clean-burning diesel replacement that can be used in existing diesel engines without modification. It is the nation’s first domestically produced, commercially available advanced biofuel. NBB is the U.S. trade association representing the entire biodiesel value chain, including producers, feedstock suppliers, and fuel distributors, as well as the U.S. renewable diesel industry.

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For more information on biodiesel, visit www.biodiesel.org

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