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 Thanks President Trump and Iowa Leaders for Restoring Integrity to RFS

Oct 4, 2019, 3:00 PM
Agreement closes the loophole on future small refinery exemptions

NEWS
FOR IMMEDIATE RELEASE

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

WASHINGTON, DC - Today, the National Biodiesel Board (NBB) thanked President Donald Trump for directing the Environmental Protection Agency (EPA) to properly account for future small refinery exemptions in annual Renewable Fuel Standard rules. NBB also thanked Agriculture Secretary Sonny Perdue, Gov. Kim Reynolds (R-IA), Sen. Chuck Grassley (R-IA) and Sen. Joni Ernst (R-IA) for their steadfast defense of the renewable fuel industry and the RFS program.

NBB CEO Donnell Rehagen stated, "On behalf of NBB's members and soybean growers, we are grateful that President Trump is taking a huge step to restore integrity to the Renewable Fuel Standard. Biodiesel producers continue to be severely harmed by EPA's misuse of small refinery exemptions. Nine producers from across the country – including in Pennsylvania, Michigan, Texas, Georgia and Iowa – have closed their doors or reduced operations and laid off more than 200 employees. Today's announcement is a first step in reversing the loss of production and restoring those jobs. The biodiesel industry deeply appreciates the consistently strong advocacy of Agriculture Secretary Perdue and Iowa’s political leaders.”

Kurt Kovarik, NBB Vice President of Federal Affairs, added, "Proper accounting of the exemptions is vital to ensure that the annual RFS volumes send a reliable signal to biodiesel producers, who are making investments and plans for the future. The biodiesel industry relies on the RFS program to support continued growth and market development. While today's proposal addresses the lost gallons from future exemptions, it does not provide for additional volumes of biomass-based diesel in 2021. We will continue to press EPA to send signals for future growth for biodiesel producers and soybean farmers.

"We appreciate President Trump's commitment to make biofuels producers and soybean farmers whole by accounting for waived biofuel gallons using a three-year average of exempted gallons as an estimate. We look forward to working with EPA to ensure that the President's commitment is fully and faithfully implemented and the RFS program is made whole from the prior damage."

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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