News
Loading


Oil Refinery Exemptions Cause a Crisis for the Biodiesel Industry

Oct 29, 2019, 11:31 AM
NBB member testifies to House Energy & Commerce Subcommittee hearing on "Protecting the RFS"

NEWS
FOR IMMEDIATE RELEASE

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

WASHINGTON, DC - Today, World Energy Founder and CEO Gene Gebolys testified on behalf of the National Biodiesel Board (NBB) at a hearing on "Protecting the RFS: The Trump Administration's Abuse of Secret Waivers" before the House Energy and Commerce Committee's Subcommittee on Environment and Climate Change. Gebolys told lawmakers that the Environmental Protection Agency (EPA) has many options to make up for the demand destruction from past Renewable Fuel Standard (RFS) waivers and prevent harm going forward. Small refinery exemptions have destroyed demand for hundreds of millions of gallons of biomass-based diesel. Nine biodiesel plants across the country have closed or cut production as a result, impacting hundreds of employees and thousands of jobs across the economy.

"When EPA finalizes its 2020 renewable fuel obligations rule by the end of this year, it must fully account for small refinery exemptions, or industry contraction and job losses will continue throughout the biofuels and broader agricultural economy," Gebolys wrote in submitted testimony. "Moreover, the agency must recognize and support the biodiesel industry's ability to grow under the RFS in 2020 and beyond, as Congress intended."

Gebolys is the founder and CEO of World Energy, which owns and operates five biodiesel plants and a renewable diesel refinery -- with total production capacity of over 200 million gallons -- and distribution hubs throughout the United States and Canada.

Gebolys testified that EPA could employ several different methods to properly account for small refinery exemptions in annual Renewable Fuel Standard rules.

"EPA should also move to prospectively grant or deny all small-refinery exemptions for a calendar year before issuing the final RVO rule for that year," he wrote in formal testimony. "This practice would allow all actual exemptions to be accounted for in EPA's existing formula for calculating percentage standards and would enhance transparency for all market participants. EPA can and should require refiners to apply for exemptions with sufficient time to allow EPA to reach a decision by the November 30 statutory deadline each year."

NBB and its members support H.R. 3006, which would direct EPA to set an annual deadline for hardship petitions, as well as other legislative efforts to direct EPA to properly account for small refinery exemptions.

Gebolys' testimony is available on the Energy & Commerce Committee website.

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.

###

For more about biodiesel, visit www.biodiesel.org.

footerMap
Main Office
National Biodiesel Board
P.O. Box 104898
Jefferson City, MO 65110



footerMap
D.C. Office
National Biodiesel Board
1331 Pennsylvania Ave., NW
Suite 505
Washington, DC 20004



Contact Us |  Terms of Use
Copyright ©2019 National Biodiesel Board. All rights reserved.


National Biodiesel Board Family of Websites: