Administration approves RFS volume hike for biodiesel - the 2013 volume increase will support more than 10,000 new jobs
Administration approves RFS volume hike for biodiesel
WASHINGTON -- The U.S. biodiesel industry commended the Obama administration for supporting strong domestic energy policy by increasing the biodiesel volume requirement for next year under the Renewable Fuel Standard.
"This was an incredibly important decision, and the Obama administration got it right," said Joe Jobe, CEO of the National Biodiesel Board, the industry trade association. "It will allow biodiesel plants across the country to invest and expand, creating thousands of jobs. At the same time, it sends a strong signal that the U.S. is standing firm behind its commitment to producing clean, American-made energy to strengthen our energy security and break our dependence on petroleum."
The EPA's Sept. 14 decision finalizes the agency's draft proposal to increase the 2013 volume requirement for biomass-based diesel under the RFS to 1.28 billion gallons. This represents a modest increase from the industry's record production last year of nearly 1.1 billion gallons and puts the industry on course for steady, sustainable growth in the coming years. [b]According to a recent economic study, the 2013 volume increase will support more than 10,000 new jobs. Already, the industry supports more than 39,000 jobs, with plants in nearly every state in the country.[/b]
"We applaud President Obama and EPA Administrator Lisa Jackson for supporting an 'all of the above' energy approach. We also want to thank Agriculture Secretary Tom Vilsack for his strong advocacy," Jobe added.
"This decision will continue to diversify our fuel supplies so that we're not so vulnerable to global petroleum markets and this endless cycle of price spikes. The Renewable Fuel Standard is clearly working to do that, and the benefits of doing so are clear: We'll continue to create good jobs, expand our economy and reduce harmful emissions. It's just smart energy policy."
Made from an increasingly diverse mix of resources such as recycled cooking oil, agricultural oils and animal fats, biodiesel is a renewable, clean-burning diesel replacement that can be used in existing diesel engines without modification. It is the first and only EPA-designated advanced biofuel being produced on a commercial scale across the country, meaning the EPA has determined that it reduces greenhouse gas emissions by more than 50 percent when compared with petroleum diesel.
Biodiesel is produced in nearly every state iand last year supported more than 39,000 jobs and $3.8 billion in gross domestic product, according to a study conducted by Cardno ENTRIX, an international economics consulting firm.
Initial production is set at 5 million gallons a year in what will be a 3-phase project offering a “continuous supply” of biodiesel for Kinder Morgan to pass on to their customers, which include Chevron, Shell, Valero, Conoco Phillips & Tesoro, according to Eslinger’s application. As with ethanol blends, the industry wants a standard blend that will go to most customers.