Crop associations upset with EPA reducing RFS
Barbre noted the EPA proposal will make investments in new biofuels plants very risky, stagnate investment in infrastructure by petroleum marketers and send the wrong signals to automakers who want more direction on where they should be spending millions of targeted investments on research and development.
"Ethanol and the RFS have been a great success story. Now, the EPA is sending a terrible message that we no longer have a long-term energy policy for biofuels, which was the original intent of this forward-thinking legislation. The Administration has clearly backed away from their commitment to renewable energy and this proposal blatantly contradicts the President's Climate Action Plan," Barbre said. "The goal of the RFS is to reduce our dependence on imported oil to make our country more energy independent and more secure. It has done that while also revitalizing rural America."
The American Soybean Association expressed its concern that the biomass-based diesel levels for 2014 and 2015 would be reduced below the amount actually produced in 2013. The rule, which establishes the amount of biofuels that obligated parties must utilize for 2014 and the amount of biomass-based diesel for 2014 and 2015, proposes a biomass-based diesel RVO of 1.28 billion gallons, less than the amount produced by the industry in 2013. EPA has also proposed to reduce the total advanced biofuels requirement, which also limits the opportunities for biodiesel.
“The level set forth in the proposal is unnecessarily low and will stifle the growth and job creation potential demonstrated by the biodiesel industry over the past several years,” said Danny Murphy, a soybean, corn and wheat farmer from Canton, Miss., and ASA’s president. “Biodiesel, including biodiesel produced from soybean oil, is the most prevalent advanced biofuel currently produced in the United States. Biodiesel is the first and only EPA-designated Advanced Biofuel to reach 1 billion gallons of annual production. The industry has met or exceeded the RFS Biomass-based Diesel volume requirements each year they have been in place.”
ASA will continue to work with EPA and industry partners to demonstrate the flaws represented by this proposal and looks forward to achieving a final rule that does not hinder the momentum and positive economic benefits generated by biodiesel.
Just days before EPA announced plans for a lower Proposed Rule for the 2014 Renewable Fuel Standard (RFS) in 2014-15, a study released by the National Biodiesel Board (NBB) found the decision could impact nearly 8,000 jobs.
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