Biodiesel Plants Closing Due to RFS Uncertainty

Source: By Andy Eubank, Hoosier Ag Today • Posted: Tuesday, February 3, 2015

The National Biodiesel Board (NBB) is asking the Environmental Protection Agency to immediately establish biodiesel volumes under the Renewable Fuel Standard to avoid further damage to the industry.

In a telephone press conference Friday morning, NBB officials highlighted fallout from the ongoing failure of EPA to establish functioning renewable fuels policy for the second consecutive year and said the recent decision to allow streamlined imports of biodiesel from Argentina under the RFS has only added new urgency to the need for stable policy.

In a letter to EPA Administrator Gina McCarthy, a former biodiesel producer and NBB Governing Board Member Ben Wootton challenged recent comments suggesting that the RFS delays haven’t hurt renewable fuels industries. Wootton lost his Pennsylvania biodiesel plant, Keystone Biofuels, in bankruptcy last year as a result of RFS uncertainty. In his letter, he explained to McCarthy how the loss of his plant also forced him to lay off 30 employees and caused him to lose his daughters’ college funds and his retirement savings.

“I would invite Administrator McCarthy to come to my shuttered plant and talk to some of the laid off workers, or to visit practically any biodiesel plant across the country to see the damage that is taking place,” Wootton said. “It is obvious that this administration doesn’t understand the severe damage that the uncertainty surrounding this rule has caused our industry and the thousands of employees it represents. It is beyond frustrating that an Administration I have strongly supported has inflicted so much harm on an industry it says it supports.”

NBB CEO Joe Jobe says the EPA decision regarding imports of Argentinian biodiesel has just exacerbated the difficulties facing the industry. “It is shocking that at a time when our renewable fuels policy is in a shambles, the EPA has essentially greenlighted biodiesel imports from Argentina to qualify for the RFS, with very little oversight or verification that the resources used to make the fuel will be grown under the normal RFS sustainability requirements,” said Jobe. “We have done everything we can for two years to help this Administration develop reasonable policy that matches President Obama’s stated support for renewable fuels, but we are at wit’s end. We are desperately searching for any indication that this support actually exists.”

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