Group urges Obama to pass biodiesel-boosting measures

25 January 2012 23:23  [Source: ICIS news]

BOGOTA (ICIS)--The US National Biodiesel Board (NBB) on Wednesday urged President Barack Obama to finalise the delayed rule for boosting biodiesel use under the Renewable Fuel Standard (RFS) in 2013 and reinstate the $1/gal biodiesel tax incentive.

"The US biodiesel industry is proving that we can accomplish the president's goals of creating jobs while building a clean-energy economy," said Anne Steckel, vice president of federal affairs for the trade group.

The industry produced a record volume of 1bn gal, exceeding the 800m-gal Environmental Protection Agency (EPA) requirement for biomass-based diesel.

The EPA last year proposed increasing the volume requirement from 1bn gal in 2012 to 1.28bn gal in 2013. But the agency announced in December that it was delaying a final decision to conduct further review.

“We're calling on the administration to quickly finalise the delayed EPA rule for boosting biodiesel use under the Renewable Fuel Standard in 2013,” Steckel said. “This is a decision that the administration can make singlehandedly and that would support more than 10,000 new jobs."

Along with advocating for the final RFS rule, the biodiesel industry also is urging Congress to reinstate the $1/gal biodiesel tax incentive that expired on 31 December.

The biodiesel industry set production records in 2011 after Congress reinstated the tax incentive following a one-year lapse in 2010. 

The US industry produced more than 802m gal of biodiesel in 2011, more than doubling 2010’s production of about 315m gal and setting a production record by beating the previous record of 690m gal output in 2008, according to the NBB.

The fate of that incentive is considered to be critical by most biodiesel producers.

When the credit lapsed in 2010, dozens of plants shut down and thousands of jobs were lost as production plummeted to the lowest level since 2006.

The most commonly used feedstocks for biodiesel are rapeseed, soy and palm oil. Corn and tallow are also used.

Biodiesel is the first and only commercial-scale fuel used across the US to meet the EPA’s definition as an advanced biofuel, according to the NBB.

By: Leela Landress
+1 713 525 2653

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