FOR IMMEDIATE RELEASE
Contact: Paul Winters
WASHINGTON, DC - Today, 24 state and national
trade associations representing soybean growers and biodiesel producers
delivered a letter to President Donald Trump, asking that he direct the
Environmental Protection Agency (EPA) to do more in the 2020 Renewable Fuel
Standard final rule to repair the harm done by small refinery exemptions.
associations write in the letter, "EPA's small refinery exemptions dealt a
severe blow to the biodiesel industry; the agency should therefore help the
industry recover. The industry is capable of continued sustainable growth of
several hundred million gallons every year. We ask that you direct EPA in the
forthcoming final rule to expand the requirement for biomass-based diesel for
2021 and include the best estimate of exempted gallons, based on an average of
actual past exemptions."
EPA granted 85 small refinery exemptions for 2016, 2017 and 2018, exempting
more than 38 billion gallons of petroleum fuel from the RFS requirements. The
exemptions destroyed demand for more than 4 billion gallons of renewable fuel
-- including biodiesel and renewable diesel -- which undermines demand for
soybean oil and price support for soybeans. Ten biodiesel producers have closed
or slashed production due to the loss of demand.
reality is that farm income this season is still one-third below what it was in
2013. Soybean prices and sales continue to fall due to the market
disruptions," the associations write. "EPA's proposal for the 2020
RFS and estimate of small refinery exemptions is not a strong enough signal to
the crop market. Increased biodiesel and renewable diesel production could help
put the soybean market back on track by adding significant value – around 11% –
to every bushel of soybeans."
Kovarik, NBB's VP of Federal Affairs, adds, "The EPA must ensure that the
biomass-based diesel volumes set in annual rules are fully met. The agency
should include in the annual standard the best estimate of future exemptions,
based on an average of the 38 billion gallons exempted over the past three
years. But the agency can do more to help the industry rebuild and support
markets for U.S. agriculture. EPA should include increased volumes for advanced
biofuels and biomass-based diesel."
A copy of the letter is available for download.
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.