Biodiesel ‘Is Becoming a Mainstream American Fuel,’ Says NBB
As U.S. EPA Data Indicates a Record of Almost 2.1 Gallons in 2015
And the Association Gets Underway with Annual Meeting in Tampa
The National Biodiesel Board is trumpeting record consumption of early 2.1 billion gallons of biodiesel in the U.S. in 2015, citing new data from the U.S. EPA. NBB meanwhile is hosting its annual meeting in Tampa, Fla. this week: January 25-28.
According to the EPA data, fuel companies reported producing 2.09 billion gallons of biodiesel in 2015, up from about 1.97 billion gallons in 2014.
“We’re seeing it take hold across the country, NBB CEO Joe Jobe said in a release. “Consumers are seeking out cleaner alternatives to fossil fuels and they see biodiesel as a high-performing, cost-competitive alternative to petroleum diesel.”
‘The RFS Is Absolutely Working’
“These numbers also show without question that the Renewable Fuel Standard is delivering significant volumes of Advanced Biofuel to the American people. They prove that the RFS is absolutely working,” Jobe said.
“Biodiesel is still a young industry, but it is becoming a mainstream American fuel that’s having a real impact in helping us cut pollution, create jobs and diversify the fuels market.”
NBB notes too however “a troubling trend in which imports are increasingly flooding the U.S. market and undercutting U.S. production.
Imports on the Rise
“According to the data, domestic production remained flat at about 1.42 billion gallons, compared with about 1.47 billion gallons in 2014 and 1.50 billion gallons in 2013. Meanwhile, imports rose from 510 million gallons in 2014 to an estimated 670 million gallons in 2015, a jump of more than 25%.”
“We are increasingly seeing subsidized, predatory imports undercutting U.S. production – in part by taking advantage of U.S. policies aimed at building up the domestic industry,” Jobe said. “This is exactly what we have been warning would happen, and it will continue until we take steps to level the playing field, including by reforming the biodiesel tax incentive as a domestic production credit.”
‘U.S. Companies Can’t Fairly Compete’
NBB has urged Congress to reform the $1-per-gallon biodiesel tax incentive from a blender’s credit to a producer’s credit. Under the existing blender’s structure, biodiesel that is produced overseas and blended in the U.S. is increasingly taking advantage of the incentive, sending U.S. tax benefits to foreign producers. Most of the imports already receive valuable incentives overseas, while US companies are typically barred from taking advantage of those overseas incentives.
“We welcome competition but U.S. companies can’t fairly compete against foreign companies that are double-dipping on overseas and US incentives while not letting U.S. producers compete in their domestic markets,” Jobe said.
Next Year’s NBB Annual: San Diego
“This reform is a simple fix that would appropriately focus U.S. tax dollars on creating jobs and stimulating economic development here at home instead of overseas.”
NBB’s annual meeting is being held at the Tampa Convention Center and Tampa Marriott Waterside Hotel & Marina. It is managed by Denver’s Kinsley Meetings.
Next year’s NBB gala has been set for January 16-19, 2017 in San Diego.
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Source: National Biodiesel Board with Fleets & Fuels follow-up