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 Asks EPA To Increase Biodiesel Volumes in Annual RFS Rule

Sep 3, 2019, 10:32 AM
Higher volumes for biomass-based diesel and proper accounting for small refinery exemptions are both needed

NEWS
FOR IMMEDIATE RELEASE

 Contact: Paul Winters
 202-737-8801
pwinters@biodiesel.org

WASHINGTON, DC - Today, the National Biodiesel Board (NBB) submitted comments on the Environmental Protection Agency's annual proposed Renewable Fuel Standard rule. NBB argues that EPA must increase advanced biofuel volumes for 2020 and biomass-based diesel volumes for 2021 to accommodate domestic biodiesel and renewable diesel producers' proven ability to increase output. Further, the agency must properly account for small refinery exemptions -- which are actively rolling back biodiesel volumes -- and the 500 million gallons of biofuel unlawfully waived in 2016.

Kurt Kovarik, NBB Vice President of Federal Affairs, said, "The RFS is intended to increase production and use of advanced biofuels such as biodiesel and renewable diesel. EPA's proposal to flat-line both biomass-based diesel and advanced biofuels -- combined with its small refinery exemption spree -- will roll back growth of our industry.

"EPA's small refinery exemptions are turning the RFS upside down and blocking our industry's progress. By handing out waivers to everyone that asks, EPA is destroying demand for hundreds of millions of gallons of biodiesel and renewable diesel and forcing U.S. producers to close up shop and lay off workers. EPA cannot continue to pretend it isn't harming biodiesel producers."

EPA's recent grant of 31 small refinery exemptions for 2018 destroyed demand for as much as 250 million gallons of biodiesel and renewable diesel. Following the decision, one of the largest U.S. producers of biodiesel and renewable diesel closed three facilities, impacting more than 100 workers. NBB is asking EPA to restore the lost volumes in the 2020 rule and adjust its RVO formula to include a reasonable estimate of future small refinery exemptions.

Kovarik continued, "EPA must also restore 500 million gallons of biofuel demand that it unlawfully waived in 2016. The agency uses the same logic that the Court overturned in the 2016 case -- demand-side constraints -- to resist restoring the waived volumes. The agency must ensure the RFS volumes are made whole and that the renewable fuel industry can have confidence in the program's volumes."

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 about biodiesel, visit www.biodiesel.org.

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