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Iowa Biodiesel Producers Displeased with EPA’s Oil-Favoring Rule

December 19, 2019

(ANKENY, Iowa) – The Environmental Protection Agency has released its final rule for the 2020 Renewable Fuel Standard, holding flat the biodiesel volumes while underestimating future small refinery exemptions. Grant Kimberley, executive director of the Iowa Biodiesel Board, issued the following statement: 

“The EPA rule does not provide positive signals to a market longing for assurance. EPA’s actions have already decimated demand for more than 4 billion gallons of renewable fuel, including biodiesel and renewable diesel. With this final rule, the agency has once again declined to uphold the integrity of a federal law meant to encourage the use of renewable fuels in America, siding with oil company interests at the expense of family farmers. Ten biodiesel producers have closed their doors or drastically cut production due to loss of demand. 

“In addition to our discouragement over lack of growth, the industry does not have confidence in EPA Administrator Andrew Wheeler’s plan for estimating future small refinery exemptions, based on EPA’s past actions. There is no assurance these exemptions will be brought under control or properly accounted for. Meanwhile, we stand ready to meet continued sustainable growth of several hundred million gallons every year. We hope to work with EPA and the administration to set a course for substantial growth in future years.” 

In the final rule, EPA sets the overall advanced biofuel volume for 2020 at 5.04 billion gallons, providing growth only for cellulosic biofuel. Other advanced biofuels, such as biodiesel and renewable diesel, will not receive additional market space. EPA maintains the 2021 biomass-based diesel volume at 2.43 billion gallons, the same volume as for 2020.

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