IBB News Releases
- Iowa Biofuels Groups: Oil Industry Study Shows Plan to Undermine Renewable Fuel Standard
Iowa Biofuels Groups: Oil Industry Study Shows Plan to Undermine Renewable Fuel Standard
March 9, 2018
(ANKENY, IOWA) – Iowa Biodiesel Board Executive Director Grant Kimberley joined Iowa Renewable Fuels Association Executive Director Monte Shaw at a joint press conference today to discuss a just-revealed oil industry study. It shows Renewable Fuel Standard waiver credits (sometimes referred to as a RIN price cap) would decimate current demand for biofuels. U.S. Senator Ted Cruz (R-Texas) has called for the caps, even as oil companies are posting record profits while agriculture struggles.
At the press conference, Kimberley stated:
“It cannot be stated strongly enough that Senator Cruz’s plan for RFS waiver credits would decimate current demand for biofuels.
“A new analysis by the National Biodiesel Board and the World Agricultural Economic and Environmental Services found that capping the price of conventional biofuels’ RIN credits would significantly harm the production of biodiesel and related industries.
“According to this analysis, capping the price of conventional ethanol RINs would lead to a reduction of up to 300 million gallons in biomass-based diesel volumes each year. That happens to be almost exactly what the state of Iowa’s entire biodiesel industry produced last year. It would also lead to $185 million more in feed costs for livestock producers—likely leading to an increase in food costs for consumers; and $.16 less per bushel of soybeans.
“Gutting the RFS would worsen the struggles farmers are already facing and could push us even deeper into an ag recession. Biodiesel supports 64,000 American jobs and the biodiesel sector has plants in just about every state. It supports the jobs of 2 million farmers as well.
“We hope President Trump sees through this bad deal and rejects a cap on RIN prices. I urge him not to cave in to the interests of certain oil companies and refiners, and stay true to rural America.”
Some biofuels advocates have reported being invited to a White House meeting Monday, March 12, to discuss the future of the RFS. In advance of the meeting, an RFS rally against the “Ted Cruz Oil Refinery Bailout” is scheduled for 12:00 p.m. on Saturday, March 10 at Bill Couser’s Farm, 20243 620th Ave, Nevada, Iowa.
Biodiesel is an advanced biofuel made from agricultural byproducts and co-products, such as soybean oil. The Iowa Biodiesel Board is a state trade association representing the biodiesel industry.