U.S. Sens. Chuck Grassley (R-IA), Roy Blunt (R-MO) and Joni Ernst (R-IA) called on the Environmental Protection Agency (EPA) on Monday to increase proposed Renewable Volume Obligations (RVOs) for biodiesel in 2019 in order to encourage energy diversity and support local economies.
The senators also urged the agency to discontinue its efforts to reduce biofuel production in 2018, which could cause job losses in rural areas.
The EPA has proposed holding biomass-based diesel volume at the current 2.1 billion gallon level in 2019 and reducing biofuel volume to 4.24 billion gallons in 2018. In a letter to EPA Administrator Scott Pruitt, the lawmakers wrote that the moves would threaten business plans and investments made after a final rule was issued in December 2016.
“Biodiesel is the first EPA-designated advanced biofuel under the Renewable Fuel Standard (RFS) to reach commercial scale production nationwide,” the letter states. “The biodiesel industry has met RFS criteria for growth each year, exceeding the goals that Congress envisioned when it created the RFS with bipartisan support.”
“In addition,” the letter continued, “biodiesel has consistently made up the majority of the advanced biofuel volumes. This ability to meet or exceed RVOs coupled with the substantial investment made by the biodiesel industry indicate that these fuels offer the best opportunity for continued growth in the near future.”
The proposed biomass-based diesel and advanced biofuel volumes don’t reflect existing production potential for the industries, the senators said, adding that they could lead to job losses in their states. Additionally, the move could discourage investments in capacity and development of new fuels.
The biodiesel industry has a major impact on the U.S. economy. The 2.1 billion gallons of U.S. biodiesel supply in 2015 resulted in an $8.1 billion economic impact, 47,400 jobs and $1.9 billion in wages paid, according to a 2016 report by LMC International on behalf of the National Biodiesel Board.
“We have made great progress through the RFS in diversifying our nation’s fuel supply while creating and sustaining jobs, strengthening local economies, generating tax revenues and improving energy security,” the letter states. “We urge you to support higher RVOs for biomass-based diesel and advanced biofuels in the final rule to encourage additional development and use of this fuel.”