US senators call on EPA to approve biodiesel volumes, gain support from Imperium

A bipartisan group of 32 US senators is calling on the Environmental Protection Agency (EPA) to move quickly in approving strong biodiesel volumes under the nation's Renewable Fuel Standards (RFS).

The senators expressed concern about the agency's delays in implementing the RFS standards for 2014, 2015 and 2016, noting that the delays have created tremendous uncertainty for the US biodiesel industry, including Seattle-based Imperium Renewables, which operates one of the largest biodiesel refineries in the country in Hoquiam, Washington.

'Imperium is grateful for Senators Murray, Cantwell and their colleagues for holding EPA accountable on this crucial issue for American biofuel companies,' says John Plaza, CEO of Imperium Renewables. 'EPA's delays are endangering our industry. Biofuel facilities around the nation are sitting idle, workers are being laid off, and some producers have been forced out of business entirely.'

The EPA is more than two years late in establishing biodiesel volumes under the RFS after failing to establish a requirement for 2014 and 2015. The continued uncertainty under the policy has destabilised the industry, causing many US production plants to stop production and lay off employees.

The senators also pointed to a recent decision by the EPA regarding biodiesel imports biodiesel from Argentina and called on the organisation to account for the anticipated increase in imports when it sets biodiesel volumes to prevent the displacement of domestic production.

Congress established the current renewable fuel standard in 2007 to require refiners to blend increasing amounts of conventional ethanol and advanced biofuels into petroleum fuel. Biodiesel, a renewable fuel made from vegetable oils, used cooking grease and animal fats, is considered an advanced biofuel under the program.

But in November 2013, EPA proposed to set the 2014 and 2015 standards for biodiesel at 1.28 billion gallons - a level far below previous years of production - the biodiesel industry said underestimated its expected production. EPA ultimately never finalised the proposal, which also called for cuts to the mandates for conventional ethanol and other advanced biofuels.

In their letter, the senators also said EPA should increase the volumes for following years to take into account for a recent decision to change the requirements for Argentinean biodiesel to qualify for the program. Domestic biodiesel producers have reportedly condemned EPA's decision, saying that it would lead to increased amounts of biodiesel entering the US.