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EPA’s Renewable Fuel Standard Proposal Cuts Biodiesel Growth Short

May 18, 2016

ANKENY, Iowa – The Environmental Protection Agency released a proposal Wednesday that would raise the biodiesel volume requirement under the Renewable Fuel Standard by only 100 million gallons in 2018. The Iowa Biodiesel Board called for growth that more closely matches the industry’s potential. IBB Executive Director Grant Kimberley released the following statement: 

“We commend EPA for releasing their proposed biomass-based diesel volumes in a timely manner. But as the top biodiesel-producing state, those of us in Iowa know that the biodiesel industry can achieve much more significant growth in 2018 than what EPA currently calls for in this proposal. Nationally, our industry already has the feedstock and the production capacity to reach 2.5 billion gallons in a sustainable manner, and we’re disappointed that this proposal is quite far from our industry’s recommendation. The number is still too low, especially since we are facing biodiesel imports, some of which have the benefit of foreign subsidies.  

“With international pressure to decrease Greenhouse Gas emissions, biodiesel offers a tremendous opportunity to achieve this goal. On a lifecycle basis, it’s the single best GHG reduction tool we have that’s widely available in the liquid fuels market. In fact, under the RFS law, Advanced Biofuels must reduce lifecycle greenhouse gas emissions by at least 50 percent compared to petroleum fuels, and according to the EPA, biodiesel reduces greenhouse gas emissions by 57 percent to 86 percent. In cutting biodiesel targets short, the Obama Administration is missing an opportunity for reduced GHG emissions, greater energy security and more American jobs. 

“We will work proactively to share information on this with EPA in the coming months, before the Final Rule is announced this fall.” 

Biodiesel – made from a variety of resources including soybean oil, recycled cooking oil and animal fats – is the first EPA-designated Advanced Biofuel to reach commercial-scale production nationwide. 

The Iowa Biodiesel Board is a state trade association representing the biodiesel industry.  

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