The American Soybean Association says the EPA's Final RFS2 Rule provides a positive outcome for soy biodiesel. Even with the inclusion of questionable indirect land use variables, it exceeds the 50 percent reduction threshold needed to qualify for the RFS2 biodiesel mandate.Dan Fiege with the South Dakota Soybean Association says that is huge for the industry since soy biodiesel was originally left out of the rule.
Fiege says mandated biodiesel that is part of the Renewable Fuels Standard will give the industry the confidence to expand.
However, he points out that until Congress passes an extension of the $1 per credit biodiesel tax incentive biodiesel production isn’t likely to resume.
Expiration of the tax incentive has essentially caused the production and use of biodiesel in the U.S. to cease and has placed the 23,000 jobs that are currently supported by the domestic biodiesel industry in immediate jeopardy. Companies have already started laying-off employees, and this situation is certain to worsen the longer the tax incentive is allowed to lapse.
