Policy setbacks in Washington are taking a toll on the biodiesel industry. A survey conducted by the National Biodiesel Board shows nearly a vast majority of U.S. biodiesel producers have scaled back production this year or idled production altogether. At a news conference Wednesday farm state Senators including North Dakota’s Heidi Heitkamp outlined the problem.
She says the cutbacks are in response to EPA’s Renewable Fuels Standard proposal and Congress’ failure to extend the biodiesel tax incentive.
Minnesota’s Amy Klobuchar says the failed biofuels policy is hurting her state’s economy.
The Senators are calling on Congress and the Administration to restore stable policy and get the industry back on track.
The biodiesel tax credit expired January 1. The proposed RFS would establish a volume mandate on biodiesel of 1.28 billion gallons this year…a sharp cut from last year’s record production of nearly 1.8 billion gallons.