Lawmakers Ask Obama to Boost Biodiesel

epa-logoAs the Environmental Protection Agency (EPA) is poised to release its decision on the amount of biodiesel and ethanol to be mixed into the nation’s fuel supply (and we’re hearing word now that decision might be delayed until the Fall), a bi-partisan group of lawmakers is making its appeal to the White House to allow biodiesel to keep growing. This news release from the National Biodiesel Board cites the letter from 52 lawmakers who are concerned about the EPA’s current proposal to reduce the amount of biodiesel to be required for obligated parties under the Renewable Fuel Standard (RFS)

“During your time in office you have supported the development and growth of the biodiesel industry. Now, biodiesel producers around the nation have the ability to generate nearly two billion gallons a year of the only EPA-approved advanced biofuel, which is commercially available across the United States,” the lawmakers wrote in a letter to President Obama. “Therefore, we believe now is not the time for a critical shift in biodiesel policy. We urgently ask that you raise biodiesel’s RVO for 2014 above 1.28 billion gallons.”

The letter, which was led by Reps. Collin Peterson, D-Minn., and Adam Kinzinger, R-Ill., can be found here. The lawmakers signing the letter represent 22 states.

In a draft RFS rule released in November, the EPA proposed holding biodiesel volumes at 1.28 billion gallons – a sharp drop from last year’s actual production of nearly 1.8 billion gallons. Biodiesel producers around the country have warned that such a proposal will cause severe contraction in the industry. A nationwide survey of producers conducted by the National Biodiesel Board (NBB) in April found that more than half have already idled a plant this year and 78 percent have reduced production from last year. Nearly two-thirds – 66 percent – have already laid off employees or anticipate doing so.

NBB officials have previously expressed their shock and disappointment on the proposal because of the success biodiesel has already shown in exceeding the targeted amounts of renewable fuels. They call on the Obama Administration “to finalize a strong RFS volume as quickly as possible.”

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