In Washington, The National Biodiesel Board advised EPA Administrator Andrew Wheeler in a letter of economic damage to the biodiesel and renewable diesel industry from the agency’s retroactive small refinery exemptions under the Renewable Fuel Standard. The letter takes issue with the Administrator’s recent comment that the approval of year-round E15 sales will make up for the damage from the exemptions.
“The E15 waiver will not provide market growth for biodiesel and renewable diesel, but small refinery exemptions have had a detrimental impact on demand for those fuels,” the letter states. “EPA is required to repair the demand destruction for biodiesel and renewable diesel resulting from the agency’s flood of unwarranted, retroactive small refinery exemptions.”
Kurt Kovarik, NBB’s Vice President of Federal Affairs, added, “When you consider how large some of the exempted refineries are compared to biodiesel producers, you can understand the threat to the agricultural economy. According to University of Illinois Professor Scott Irwin, the demand destruction for biodiesel and renewable diesel could reach 2.45 billion gallons over the next few years causing a $7.7 billion economic loss for our industry.”