The Environmental Protection Agency’s proposed Renewable Fuels Standard rule was a mixed bag for the biodiesel industry. National Biodiesel Board director Tim Ostrem says the agency’s proposal would increase 2022 advanced biomass-based diesel volumes slightly but fell short on the 2021 recommendations.

Biodiesel and renewable diesel production levels have been growing in the U.S. and in 2020 production was at 3 billion gallons, which exceed the Renewal Volume Obligations in the RFS. Yet, Ostrem says they still rely on the baseline mandates.

EPA’s rule proposal would also put an end to the demand destruction that resulted from unwarranted small refinery exemptions as they intend to refuse those 65 waivers. Ostrem says its important for the industry that EPA restore the improperly waived volumes from prior years.

EPA is not providing guidance on 2023 biomass-based diesel volumes, which were due under the statute on November 30, 2021.
NBB also welcomed COVID relief for biofuel producers and funds for the Higher Blend Infrastructure Incentive Program.