American Association
September 20, 2018
The Honorable Donald J. Trump President of the United States The White House 1600 Pennsylvania Avenue, NW Washington, DC 20500
Dear Mr. President,
Thank you for your ongoing support for rural America, its agricultural economy, and the homegrown industries that build prosperity and create jobs. Like many citizens throughout the Midwest, we are grateful that you remain true to your word in defending and expanding the Renewable Fuel Standard (RFS). The RFS is a crucial foundation for the farmers, manufacturers, and entrepreneurs working to grow our nation's domestic renewable energy industry.
Biodiesel is America's first and most widely available advanced biofuel. Biodiesel and renewable diesel are produced in nearly every U.S. state from diverse feedstocks, such as soybean oil, used cooking oil, and animal fats. Biodiesel adds value to every bushel of soybeans and plays an important role by providing a market for surplus soybean oil.
Today, farming income is at its lowest level in more than a decade. Even as soybean growers set production records this year, they are experiencing depressed prices and market uncertainty. While pursuing regulatory action to allow for year-round use of E15 is a step in the right direction for ethanol producers, we would encourage you to provide additional help to the nation's farmers and rural communities by supporting policies that expand production and use of biodiesel as well.
Under the recently proposed rule for 2019 RFS volumes, EPA offered too little room for growth of biodiesel. The agency acknowledges that biodiesel producers will likely produce 2.8 billion gallons next year; however, the agency proposed to set the required RFS volume well below that level. Moreover, the agency recently granted numerous small refinery exemptions that reduce demand for biodiesel by at least 300 million gallons. This is equivalent to a years' worth of biodiesel production in Iowa, the nation's top biodiesel producing state.
The biodiesel industry has asked EPA to set the RFS volume for biomass-based diesel for 2020 at 2.8 billion gallons and to accurately account for small refinery exemptions in the annual rule. EPA must ensure that the biodiesel volumes set in the RFS are met.
The biodiesel industry and other stakeholders have also asked Congress to extend the biodiesel and renewable diesel incentive in tax policy. This tax credit has helped blenders and fuel marketers expand the use of biodiesel. Unfortunately, "on-again, off-again" legislative
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extensions of this tax incentive disrupt our sector's access to capital, frustrating companies' ability to make necessary investments, to hire workers, and to expand.
To provide certainty in planning, we are seeking a multi-year extension of the biodiesel and renewable diesel tax incentives. Long-term certainty will foster growth in the domestic biodiesel market and lead to great economic and energy security benefits.
Your support for these policies can further grow the RFS and provide an economic boost for rural America when it is most needed. We look forward to working with you to support a strong RFS and carry out the vision you outlined to fulfill our energy needs while growing our economy.
Sincerely,
-Rtr- .4%1714
Ryan Findlay CEO American Soybean Association
Donnell Rehagen CEO National Biodiesel Board
Cc:
The Hon. Sonny Perdue Secretary U.S. Department of Agriculture 1400 Independence Ave., SW Washington, DC 20250
The Hon. Andrew Wheeler Acting Administrator Environmental Protection Agency Office of the Administrator, Mail Code 1101A 1200 Pennsylvania Avenue, NW Washington, DC 20460
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