Renewable Fuel Standard biodiesel volumes head in right direction
November 23, 2016
(ANKENY, IOWA) – The Environmental Protection Agency today released final Renewable Fuel Standard volumes for 2018, laying the groundwork for a modest increase in American-made energy. Under the new RFS rule, Biomass-Based Diesel standards would move to 2.1 billion gallons in 2018 up from the already finalized 2 billion gallons in 2017. The Biomass-Based Diesel category – a diesel subset of the overall Advanced Biofuel category – is made up of biodiesel and renewable diesel, another diesel alternative made from the same feedstocks using a different technology.
The rule also moves Advanced Biofuels to 4.28 billion gallons in 2017, up from 3.61 billion gallons in 2016, with Biomass-based Diesel continuing to fill a large portion of the Advanced Program.
Grant Kimberley, executive director of the Iowa Biodiesel Board, issued the following statement:
“We’re pleased to see the volumes of biodiesel continue to grow under the Renewable Fuel Standard. We are especially encouraged by the strong increase in the Advanced Biofuels category, which is an area where biodiesel can grow and compete. This is critical in light of the foreign-produced biodiesel we’ve seen from places like Argentina and Southeast Asia, and sugarcane ethanol from Brazil.
“However, at 2.1 billion gallons, the Biomass-based Diesel volumes are still below the more than 2.6 billion gallons of biodiesel and renewable hydrocarbon diesel we expect to see in 2016.
"The RFS is one of the most successful bi-partisan energy policies ever to facilitate job growth and diversification of our nation’s energy supply. Our state’s producers are thankful to have more market certainty with a timely announcement for 2018 requirements.
“As the nation's leading biodiesel producer, Iowa’s economy stands to benefit from this policy. With our state's 13 plants producing a record 242 million gallons of biodiesel last year, our industry supports thousands of jobs and economic development while replacing foreign oil and increasing energy security. Our state’s production record also demonstrates that we can do more under this policy. We hope to see a bolder increase in RFS volumes the coming years, which benefits American consumers and the economy.”
According to a study by Cardno Entrix, in 2015, the industry supported more than 3,000 jobs and contributed almost $345 million in GDP. Biodiesel has been shown to add 63 cents a bushel to the price of soybeans while reducing the price of soybean meal, and also adds value to animal fats, which benefits livestock producers.
Biodiesel – made from a variety of resources including soybean oil, recycled cooking oil and animal fats – was 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.