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Biodiesel, soy groups hope for wiggle room in final RFS mandate

 

By ANN HINCH

Associate Editor

 

JEFFERSON CITY, Mo. — At least one row crop sector and a related group find some satisfaction in the EPA’s Friday announcement of RFS RVOs.

"This proposal is a significant step in the right direction," National Biodiesel Board (NBB) CEO Joe Jobe said. "It is not perfect, but it will get the U.S. biodiesel industry growing again and put people back to work."

Last year, the EPA reported 1.63 billion gallons of biomass-based diesel was manufactured in the United States. It is proposing RVOs of 1.7 billion for this year, 1.8 billion next year and 1.9 billion for 2017. By comparison, in a 2007 report, the EPA projected that in 2012 biodiesel producers would make only 303 million gallons. (Just three years later, in 2010, the EPA established an expected RVO of 1 billion gallons for 2012.)

"Biodiesel has proven that advanced biofuels can do just what we said they would, which is create jobs and strengthen our energy security while significantly cutting harmful pollution from petroleum. Biodiesel has displaced more than 8 billion gallons of petroleum diesel in the U.S. over the last decade.

"However, more can be done, and we particularly look forward to working with the administration on strengthening biodiesel volumes for 2016 and 2017 during the comment period in the coming weeks," Jobe added.

In its November 2013 proposal, the NBB stated the EPA called for holding biodiesel RVOs at 1.28 billion gallons through 2015, a cut from 2013’s actual production.

The American Soybean Assoc. (ASA) and its farmer members have a stake because much biodiesel is made from soy oil. It too was pleased with the EPA proposal but agreed with the NBB that the RVOs "do not fully recognize or capitalize on the capacity and further growth potential of U.S. biodiesel."

"We’re hardly done fighting for biodiesel," said Wade Cowan, ASA president. "As we have in the preceding months and years, ASA will continue to point out the benefits and importance of this critical market for soybean farmers."

The NBB added biodiesel is produced in nearly every state and supports more than 62,000 American jobs.

6/3/2015