Six senators urge more certain biodiesel policies after survey shows problems
May 14, 2014 | 05:08 PM
Six Democratic senators — Heidi Heitkamp of North Dakota, Dick Durbin of Illinois, Maria Cantwell of Washington, Amy Klobuchar and Al Franken of Minnesota and Joe Donnelly of Indiana — today called on the Obama administration not to cut the biodiesel volumetric requirement under the Renewable Fuel Standard and on Congress to put the expired biodiesel tax credit back in place.
The senators held a press conference with biodiesel producers as the National Biodiesel Board released a survey of 54 biodiesel producers showing that nearly 80 percent have scaled back production this year and almost six in 10 have idled production altogether.
Additionally, two-thirds of producers said they have already reduced or anticipate reducing their workforce as a result of the downturn in production.
The Environmental Protection Agency has proposed reducing the biodiesel volumetric requirement as well as other renewable fuels requirements, but EPA Administrator Gina McCarthy has signaled that the reductions in the final rule, which is expected in June, may be scaled back.
The biodiesel tax credit, a $1 per gallon tax incentive to stimulate production, is in the tax extenders bill that is moving through the Senate this week, but the tax credit’s prospects in the House are still uncertain.
“Inconsistency in Washington is wreaking havoc on the U.S. biodiesel industry,” Anne Steckel, NBB’s vice president of federal affairs, said in a news release.
“It’s not just hurting these producers,” she said. “It is a setback for local economies where these plants operate, for our environment, for our national energy security, and for drivers who are tired of ever-increasing fuel prices that result from the petroleum industry’s monopoly at the pump.”
Among the other survey findings:
The producers nearly universally attributed the industry decline to the weak RFS proposal and loss of the tax incentive, the survey said.
“We made these investments because we believed in what the administration and Congress were trying to accomplish with the Renewable Fuel Standard and because a road map was laid out for growth under the RFS for the next decade, particularly in advanced biofuels,” said Wayne Presby, owner of White Mountain Biodiesel in North Haverhill, N.H., discussing the growth of his business in recent years and now-delayed expansion plans.
“But with this RFS proposal, and the uncertain tax policy from Congress, that expansion and the jobs that would come with it are on hold.”
“Biodiesel has proven itself to be a successful homegrown, homemade fuel,” said Bryan Christjansen, general manager at Renewable Energy Group’s refineries in Albert Lea, Minn. and Mason City, Iowa.
“If the administration chooses to go with the EPA proposal, it does not just put domestic fuel production in jeopardy, it harms local economies and billions of dollars of investments.”
“This uncertainty is bad for producers, it’s bad for agriculture, it’s extremely bad for investors, it’s bad for the environment, and it’s particularly bad for those of us who took cues from Congress and the administration and made the commitments to build a U.S. renewable fuels future,” said Terry Goerger, a seed company owner and third-generation farmer from Mantador, N.D.
The EPA’s proposed Renewable Fuel Standard rule would establish a biodiesel standard of 1.28 billion gallons this year, which a news release from Heitkamp’s office said would force many farmers and producers to shut their doors.
Last year, however, biodiesel producers used products like canola and soybeans to generate a record of nearly 1.8 billion gallons, the statement said, with plants in almost every state supporting about 62,200 jobs. The statement also noted that biodiesel reduces greenhouse gas emissions by 57 percent to 86 percent compared to petroleum diesel.
The senators each spoke in support of the biodiesel industry and producers.
Heitkamp — “Biodiesel has an incredible success story to tell. Farmers in North Dakota and throughout the country are supporting good jobs, reducing our dependence on foreign oil, and boosting rural communities.”
“But instead of promoting these successes, federal policies are dragging our farmers and producers down. That’s the wrong direction. I’m going to continue pushing on the EPA and Congress to implement policies that stand up for our farmers and producers.”
The EPA’s proposed Renewable Fuel Standard rule would establish a biodiesel standard of 1.28 billion gallons this year, which the forcing many farmers and producers to shut their doors.
But last year, biodiesel producers — using products grown on farms in North Dakota and throughout the country, like canola and soybeans — generated a record of nearly 1.8 billion gallons, with plants in almost every state in the U.S. supporting about 62,200 jobs. And biodiesel reduces greenhouse gas emissions by 57 percent to 86 percent compared to petroleum diesel.
Durbin — “The Renewable Fuels Standard was created more than 10 years ago to drive growth in the biofuels industry. And with the help of the biodiesel tax credit, the biodiesel industry has delivered on its promise, supporting thousands of jobs in Illinois and helping drive economic development in our rural communities.
“But as illustrated by the survey released today, two recent issues have put this industry — this success story — at risk.”
Cantwell — “It’s time to provide predictability so that Washington state innovative companies like General Biodiesel can grow.”
Klobuchar — "The administration needs to abandon its efforts to weaken the RFS and focus on creating a stable, predictable environment that will help our biodiesel producers create jobs and power our economy.”
Franken — “Homegrown renewable energy, like biodiesel, not only creates jobs and economic development in Minnesota and across the country, but it also strengthens our national energy security by cutting our reliance on foreign oil.
“That's why now is exactly the wrong time for the EPA to try to weaken the Renewable Fuels Standard and allow big oil companies to blend less biodiesel and other renewables into our nation’s gas supply. We need to renew our commitment to renewables, and we can start by reversing that shortsighted EPA proposal and by reinstating the biodiesel tax credit.”
Donnelly — “The biodiesel industry is an excellent example of American-made energy that increases our energy security and creates jobs at home. That is why it is so critical that we continue and strengthen energy policies, like the biodiesel tax credit and the Renewable Fuel Standard, that increase the production of American-made biofuels.”
The senators held a press conference with biodiesel producers as the National Biodiesel Board released a survey of 54 biodiesel producers showing that nearly 80 percent have scaled back production this year and almost six in 10 have idled production altogether.
Additionally, two-thirds of producers said they have already reduced or anticipate reducing their workforce as a result of the downturn in production.
The Environmental Protection Agency has proposed reducing the biodiesel volumetric requirement as well as other renewable fuels requirements, but EPA Administrator Gina McCarthy has signaled that the reductions in the final rule, which is expected in June, may be scaled back.
The biodiesel tax credit, a $1 per gallon tax incentive to stimulate production, is in the tax extenders bill that is moving through the Senate this week, but the tax credit’s prospects in the House are still uncertain.
“Inconsistency in Washington is wreaking havoc on the U.S. biodiesel industry,” Anne Steckel, NBB’s vice president of federal affairs, said in a news release.
“It’s not just hurting these producers,” she said. “It is a setback for local economies where these plants operate, for our environment, for our national energy security, and for drivers who are tired of ever-increasing fuel prices that result from the petroleum industry’s monopoly at the pump.”
Among the other survey findings:
- 78 percent have reduced production in 2014 compared to 2013.
- 57 percent have idled production altogether or shut down a plant this year.
- 66 percent have reduced workforce or anticipate reducing workforce.
- 85 percent have delayed or canceled expansion plans.
The producers nearly universally attributed the industry decline to the weak RFS proposal and loss of the tax incentive, the survey said.
“We made these investments because we believed in what the administration and Congress were trying to accomplish with the Renewable Fuel Standard and because a road map was laid out for growth under the RFS for the next decade, particularly in advanced biofuels,” said Wayne Presby, owner of White Mountain Biodiesel in North Haverhill, N.H., discussing the growth of his business in recent years and now-delayed expansion plans.
“But with this RFS proposal, and the uncertain tax policy from Congress, that expansion and the jobs that would come with it are on hold.”
“Biodiesel has proven itself to be a successful homegrown, homemade fuel,” said Bryan Christjansen, general manager at Renewable Energy Group’s refineries in Albert Lea, Minn. and Mason City, Iowa.
“If the administration chooses to go with the EPA proposal, it does not just put domestic fuel production in jeopardy, it harms local economies and billions of dollars of investments.”
“This uncertainty is bad for producers, it’s bad for agriculture, it’s extremely bad for investors, it’s bad for the environment, and it’s particularly bad for those of us who took cues from Congress and the administration and made the commitments to build a U.S. renewable fuels future,” said Terry Goerger, a seed company owner and third-generation farmer from Mantador, N.D.
The EPA’s proposed Renewable Fuel Standard rule would establish a biodiesel standard of 1.28 billion gallons this year, which a news release from Heitkamp’s office said would force many farmers and producers to shut their doors.
Last year, however, biodiesel producers used products like canola and soybeans to generate a record of nearly 1.8 billion gallons, the statement said, with plants in almost every state supporting about 62,200 jobs. The statement also noted that biodiesel reduces greenhouse gas emissions by 57 percent to 86 percent compared to petroleum diesel.
The senators each spoke in support of the biodiesel industry and producers.
Heitkamp — “Biodiesel has an incredible success story to tell. Farmers in North Dakota and throughout the country are supporting good jobs, reducing our dependence on foreign oil, and boosting rural communities.”
“But instead of promoting these successes, federal policies are dragging our farmers and producers down. That’s the wrong direction. I’m going to continue pushing on the EPA and Congress to implement policies that stand up for our farmers and producers.”
The EPA’s proposed Renewable Fuel Standard rule would establish a biodiesel standard of 1.28 billion gallons this year, which the forcing many farmers and producers to shut their doors.
But last year, biodiesel producers — using products grown on farms in North Dakota and throughout the country, like canola and soybeans — generated a record of nearly 1.8 billion gallons, with plants in almost every state in the U.S. supporting about 62,200 jobs. And biodiesel reduces greenhouse gas emissions by 57 percent to 86 percent compared to petroleum diesel.
Durbin — “The Renewable Fuels Standard was created more than 10 years ago to drive growth in the biofuels industry. And with the help of the biodiesel tax credit, the biodiesel industry has delivered on its promise, supporting thousands of jobs in Illinois and helping drive economic development in our rural communities.
“But as illustrated by the survey released today, two recent issues have put this industry — this success story — at risk.”
Cantwell — “It’s time to provide predictability so that Washington state innovative companies like General Biodiesel can grow.”
Klobuchar — "The administration needs to abandon its efforts to weaken the RFS and focus on creating a stable, predictable environment that will help our biodiesel producers create jobs and power our economy.”
Franken — “Homegrown renewable energy, like biodiesel, not only creates jobs and economic development in Minnesota and across the country, but it also strengthens our national energy security by cutting our reliance on foreign oil.
“That's why now is exactly the wrong time for the EPA to try to weaken the Renewable Fuels Standard and allow big oil companies to blend less biodiesel and other renewables into our nation’s gas supply. We need to renew our commitment to renewables, and we can start by reversing that shortsighted EPA proposal and by reinstating the biodiesel tax credit.”
Donnelly — “The biodiesel industry is an excellent example of American-made energy that increases our energy security and creates jobs at home. That is why it is so critical that we continue and strengthen energy policies, like the biodiesel tax credit and the Renewable Fuel Standard, that increase the production of American-made biofuels.”
