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NBB Welcomes Overdue Proposed RFS Volumes

Dec 7, 2021, 3:58 PM
Future growth in volumes is appreciated but marred by retroactive reductions to 2020 volumes

WASHINGTON, DC – Today, the National Biodiesel Board welcomed the Environmental Protection Agency’s proposed Renewable Fuel Standard rule and the USDA’s announcement of COVID relief for biofuel producers and funds for the Higher Blend Infrastructure Incentive Program. EPA’s proposal would increase 2022 advanced volumes and restore improperly waived volumes from prior years.

Kurt Kovarik, NBB’s Vice President for Federal Affairs, stated, “During the past two years’ economic challenges, our industry worked hard to meet growing U.S. demand for cleaner, better fuels. We are confident that we can continue to grow and innovate to meet additional market needs. EPA’s rule provides some growth for advanced biofuels in 2022 and we hope puts an end to the demand destruction that resulted from unwarranted small refinery exemptions. We look forward to working with the agency to getting the RFS back on track. And we greatly appreciate the economic relief and incentives for infrastructure that USDA is announcing.

“The long delay in setting 2021 volumes is a missed opportunity,” Kovarik continued. “Moreover, EPA is setting a bad precedent by recalculating the 2020 obligations. The retroactive lowering of volumes creates uncertainty about future growth.”

In 2020, the U.S. biodiesel and renewable diesel market grew to 3 billion gallons – its highest volume ever – and generated more than 4.5 billion advanced biofuel credits (Renewable Identification Numbers or RINs). Through the first ten months of 2021, the industry maintained a sustainable production rate comparable to 2020. EPA is proposing sustainable growth opportunities consistent with industry expectations along with a statutorily required increase of 500 million gallons in the overall advanced biofuel category.

Volume in billion gallons (% of national fuel) 2020 Final 2020 Retro. 2021 2022
Biomass-based diesel (D4) 2.43
(2.1%)
2.43
(2.37 - 2.5%)
2.43
(2.19 - 2.3%)
2.76
(2.42 - 2.54%)
Overall advanced 5.09
(2.93%)
4.63
(2.91 - 3.07%)
5.2
(3.03 - 3.18%)
5.77
(3.27 - 3.42%)
Overall renewable 20.09
(11.56%)
17.13
(10.78 - 11.36%)
18.52
(10.79 - 11.33%)
20.77
(11.76 - 12.33%)

 

EPA is not providing guidance on 2023 biomass-based diesel volumes, which were due under the statute on November 30, 2021.

The U.S. biodiesel and renewable diesel industry supports 65,000 U.S. jobs and more than $17 billion in economic activity each year. Every 100 million gallons of production supports 3,200 jobs and $780 million in economic opportunity. Biodiesel production supports approximately 13 percent of the value of each U.S. bushel of soybeans.

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Made from an increasingly diverse mix of resources such as recycled cooking oil, soybean oil and animal fats, biodiesel and renewable diesel are better, cleaner fuels that are available now for use in existing diesel engines without modification. NBB is the U.S. trade association representing the entire biodiesel and renewable diesel value chain, including producers, feedstock suppliers, and fuel distributors.

For more information on biodiesel, visit www.biodiesel.org.

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