By Tom Han
ce and Angela Dansby
It continues to be a challenging time for biodiesel, both commercially and on the federal policy front. President Trump and the Administration are dealing with backlash following the decision to grant an additional 31 retroactive Small Refinery Exemptions (SREs) in August under the Renewable Fuel Standard (RFS). The SREs undermine RFS volume requirements and result in reduced demand for biofuels, especially biodiesel. Read More »
The U.S. Canola Association (USCA), along with other biodiesel industry stakeholders, continues to lobby Congress to reinstate the biodiesel blenders tax credit. The $1 per gallon credit for biodiesel and renewable diesel expired at the end of 2017, and while a bill that would have extended it seven years was passed by the House last December, it was not acted on by the Senate before Congress adjourned for the year. Supporters are keeping up the push in 2019 with USCA Capitol Hill visits in late January, a targeted industry fly-in in early February and an industry coalition letter to House leadership urging quick action on a package of tax extenders. Read More »
The National Biodiesel Board (NBB) was active last summer in urging Environmental Protection Agency (EPA) Acting Administrator Andrew Wheeler to increase biomass-based diesel and advanced volumes and accurately account for small refinery hardship exemptions in the annual Renewable Fuel Standards. We thanked the 39 senators who sent a letter to the EPA in support of these goals. A special shout-out goes to Senator Heidi Heitkamp (D-ND) for leading the letter along with Senators Patty Murray (D-WA), Roy Blunt (R-MO), Chuck Grassley (R-IA) and John Hoeven (R-ND) for signing on.
A mentor in graduate school would refer to every obstacle or challenge faced as an opportunity. Using his philosophy, the biodiesel industry has had its fair share of “opportunities” in 2017.
As a quick primer, the Renewable Fuel Standard (RFS) was signed into law a decade ago. It has been a significant market driver for expansion of the U.S. biodiesel industry. Under the statute, a minimum number of gallons of biodiesel to be blended into our nation’s energy supply will be determined on an annual basis. The United States Environmental Protection Agency (EPA) Administrator Scott Pruitt is required to examine market factors outlined in the statute when making this decision and is expected to consult with the Secretaries of Agriculture and Energy.
While many policy matters are on idle as we enter the heat of summer and this election year, biodiesel policy issues are not slowing down.
On May 27, the U.S. Environmental Protection Agency (EPA) released the proposed rule for the Renewable Fuel Standard (RFS) volume requirements, including the volume requirements for biomass-based diesel for 2018 and the total advanced biofuels volumes for 2017 and 2018.