Biodiesel Production Cutbacks

Last week six U.S. Senators called for the Obama Administration and Congress to support policies that promote biodiesel production and jobs. Their press conference followed on the heels of the recently released survey by the National Biodiesel Board that showed that roughly 78% of biodiesel producers have reduced production this year and nearly 60% of biodiesel plants have been made idle or completely shut down. The Senators spoke of the need for reinstatement of the biodiesel tax incentive, which expired January 1, and for the Environmental Protection Agency to increase the proposed 2014 Renewable Fuel Standard volumes for biodiesel. They also outlined the negative impact that the nation’s renewable energy policy is having on the entire renewable fuels industry, stressing that “this is not the time to tell investors that we’re backing off ethanol”. Senator Maria Cantwell stated that since 2005 when the standard for biodiesel was introduced we’ve gone from producing 25 million gallons to 1.7 billion gallons, and that they and others are wanting to make sure that this product continues to grow.