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Serving: United States
biodiesel plant United Soybean Board

Small refinery waivers knock biodiesel backwards

Latest SRE's blamed for shutdown of 3 plants and more closings and layoffs feared

The Renewable Fuel Standard is again taking hits from the Environmental Protection Agency in the form of small refinery waivers and flat biomass-based diesel and advanced biofuels volumes for 2020/2021 that, in effect, send the industry staggering backwards.

Related: EPA grants 31 refinery exemptions

“These decisions are a one-two punch for the biofuel industry, and bottom line, farmers. But, we are heartened by the support we are getting from USDA and members of Congress, including Senator Grassley and many others speaking up and fighting for the RFS. They understand the value not just for biodiesel producers and soybean farmers, but rural economies, the environment, and U.S. consumers,” said Rob Shaffer, American Soybean Association director and chair of the organization’s Biodiesel and Infrastructure Committee.

Related: Trump suggests rescinding ethanol waivers

Immediately following EPA’s decision to allow 31 additional small refinery exemptions, one of the largest biodiesel producers in the country announced the shutdown of three plants located in Pennsylvania, Georgia, and Mississippi. Other large producers have announced closings and laid off workers, with more closings and layoffs likely if these policies remain unstable.

Related: Poet idles production due to SREs

While the industry is reeling, Congress and the administration can get the RFS back on stable footing, Shaffer said.

ASA asks that President Trump uphold his commitments to support the RFS and American farmers by increasing the RFS and urges Congress to get the biodiesel tax credit extension completed. Retroactive waivers of RFS volumes, the zero growth proposed for future RFS volumes, and inaction on the biodiesel tax credit are all compounding pressure on a soybean industry already facing a down farm economy, the lingering trade war with China, and seasonal weather-related issues.

Related: Soybean farmers on mission to develop new markets

Source: American Soybean Association, which is solely responsible for the information provided and is wholly owned by the source. Informa Business Media and all its subsidiaries are not responsible for any of the content contained in this information asset. 
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