By DOUG SCHMITZ

Iowa Correspondent

ANKENY, Iowa — While the final rule for volumes of advanced biofuel and biomass-based diesel isn’t expected until November, the Iowa Biodiesel Board (IBB) recently made its case to the U.S. EPA to increase future biodiesel volumes rather than stalling them under the federal Renewable Fuel Standard (RFS).

In written comments submitted August 31, the IBB asked the agency to increase the volumes in its final rule to a biomass-based diesel volume that is at least 2.5 billion gallons in 2019, and to set advanced biofuel volumes of at least 4.75 billion for 2018.

“On the promise of a brighter future, in the last couple of years, the Iowa biodiesel industry has increased its capacity by more than 20 percent,” the IBB stated. “Our members say there are many more such projects ready and waiting to go forward that would create even more jobs.

“Unfortunately, most of those are currently on hold until more certainty in the marketplace is received through year-over-year growth of the RFS volume targets.”

The Ankeny-Iowa based group said the United States can meet production demand and has substantial room for growth, but the EPA’s proposal does not acknowledge this.

“We believe the agency should be more aggressive in meeting Congress’ goals to move this country toward advanced biofuels,” the group said. “This would create more jobs, improve the economy and benefit public health and the environment throughout the country.

“Of course, we also strongly oppose any efforts to further reduce the volumes, which would be devastating to our industry and to all the U.S agriculture sector. Anything but strong growth in RFS volumes of biomass-based diesel and advanced biofuel will make it harder for U.S. biodiesel producers to compete in their own country.

“Imports already receive unfair advantages, and a shrinking RFS means even less opportunity for domestic producers,” the group added.

In addition, the IBB explained the biodiesel industry has raised concerns over tax and trade issues. While some of those issues are being addressed, the group told the EPA the existence of biodiesel imports isn’t a reflection of the domestic industry’s production capabilities.

“On the contrary, we’re operating below capacity, and we have surplus supplies of agriculture feedstock available for use. U.S. agriculture has seen commodity price decreases of nearly 60 percent in some sectors over the last four years,” the IBB said. “The uncertainty of the RFS volumes and the minor increases have contributed to the downturn in the agriculture economy.”

In its comments to the EPA, the National Biodiesel Board (NBB) called on the agency to do the same as the IBB is requesting.

“Doing so is necessary to effectuate Congress’s intent to ‘create incentives to increase renewable fuel supplies and overcome constraints in the market’ and to respect the EPA’s methodology from its own past rules,” said Doug Whitehead, NBB CEO.

“Raising the advanced biofuel volume to at least 4.75 billion gallons is an increase that could be achieved so easily by the industry, that there is no non-arbitrary justification for the EPA to set the volumes lower.”

According to the NBB, the U.S. biomass-based diesel industry has grown to support more than 64,000 jobs throughout its supply chain. “The industry also provides benefits to American farmers and livestock producers by creating demand for the surplus oils from commodity crops and reducing the price of soybean meal,” the NBB said.

It noted the EPA’s proposed rule “sends a chilling message that the EPA is not interested in promoting growth in biofuels in accordance with the RFS, which will discourage any future investment and cause a contraction in the industry. It will result in a blow to our country’s energy security, a loss of jobs and wages of employees concentrated in rural areas and a reduction in the income that American farmers receive for their crops and livestock products.”

Roger Johnson, National Farmers Union (NFU) president, urged the EPA to issue RFS volume obligations that expand markets for higher blends of ethanol and advanced biofuel.

“The RFS has provided tremendous benefits to American family farmers, rural residents, consumers and the environment for the past decade,” he added. “If the EPA upholds Congress’ intent to institute a market-driving renewable energy policy, the RFS will continue to pave the way for America’s transition to a renewable energy future.”

Johnson also called on the EPA to improve on its proposed volume obligations from July. He said while the proposal maintained conventional biofuel levels, it lowered requirements for advanced biofuel.

“President Trump and his administration have assured family farmers and rural residents that this administration plans to support biofuels, and uphold the intent of Congress as it relates to the RFS,” he said. “As family farmers navigate a severely depressed farm economy, this is a time the administration should be raising expectations for a policy that drives many economies in rural America.

“We urge the administration to increase these proposed volumes and reject any calls to further reduce the required volumes,” he added.