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New Ad: EPA's RFS Waivers Harm Biodiesel Producers, Farmers
USAgNet - 07/09/2019

The National Biodiesel Board (NBB) Monday launched an ad campaign highlighting the economic damage to biodiesel and renewable diesel producers from the Environmental Protection Agency's small refinery exemptions. The ads are currently scheduled to run for one week in Des Moines, Iowa, and in Washington, D.C.

"The president's EPA is hurting farmers and eliminating jobs by giving special favors to big oil companies," the ad states. "The EPA's big oil bailout is destroying demand for biodiesel."

Kurt Kovarik, NBB's vice president of federal affairs, added, "Just last month, President Trump vowed that his administration would defend America's farmers. Yet his EPA is preparing another flood of RFS exemptions that will harm farmers. The small refinery exemptions destroy demand for hundreds of millions of gallons of biodiesel and renewable diesel, which means a loss of jobs and a loss of value for agriculture.

"The biodiesel industry does not benefit from approval of year-round E15 sales. While that approval was long overdue, it can't make up for the damage from small refinery exemptions."

An estimate from University of Illinois Professor Scott Irwin says the demand destruction could reach 2.45 billion gallons over the next few years causing a $7.7 billion economic loss for the biodiesel industry.

"Just one oil refinery waiver can put an entire biodiesel facility out of business, and that means fewer jobs for rural America," the ad states.

Under the RFS, an oil refinery that processes up to 75,000 barrels of oil per day can qualify for a small refinery exemption. The RFS advanced biofuel obligation for a refinery that size would be as much as 20 million gallons of renewable fuels and primarily would be met with biomass-based diesel.

Made from an increasingly diverse mix of resources such as recycled cooking oil, soybean oil and animal fats, biodiesel is a renewable, clean-burning diesel replacement that can be used in existing diesel engines without modification. It is the nation's first domestically produced, commercially available advanced biofuel. NBB is the U.S. trade association representing the entire biodiesel value chain, including producers, feedstock suppliers, and fuel distributors, as well as the U.S. renewable diesel industry.

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