July 20, 2022
BY Erin Voegele
A group of 24 senators, led by Sens. Amy Klobuchar, D-Minn.; Chuck Grassley, R-Iowa; Patty Murray, D-Wash; and John Thune, R-S.D., on July 19 sent a letter to U.S. EPA Administrator Michael Regan urging the agency to set strong 2023 and 2024 Renewable Fuel Standard renewable volume obligations (RVOs) for biomass-based diesel.
In the letter, the senators stress that the production and use of biodiesel and renewable diesel contributes significantly to the U.S. economy and environment.
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“These homegrown fuels add to our country’s critical fuel supplies, which helps to moderate fuel prices,” the senators wrote. “In 2021, availability of U.S. biodiesel and renewable diesel reduced fuel prices at the pump by 4 percent. U.S. production of these clean fuels supports 13 percent of the value of U.S. grown soybeans and U.S. biofuels production supports more than 65,000 U.S. jobs and generates more than $17 billion in economic opportunity for rural communities. And biodiesel and renewable diesel reduce greenhouse gas emissions on average by 74 percent compared to petroleum diesel, according to forthcoming updates to Argonne National Laboratory’s GREET model.
“Farmers and biofuel producers are an essential part of the solution to the nation’s economic, environmental, and energy security challenges,” they continued. “They deserve certainty in this policy. A multiyear rule would provide the predictability and market signals that the biomass-based diesel industry needs to grow.”
In addition to Klobuchar, Grassley, Murray and Thune, the letter is signed by Sens. Tina Smith, D-Minn.; Roger Marshall, R-Kan.; Debbie Stabenow, D-Mich.; Joni Ernst, R-Iowa; Tammy Duckworth, D-Ill.; Roy Blunt, R-Mo.; Tammy Baldwin, D-Wisc.; Susan Collins, R-Maine; Mazie Hirono, D-Hawaii; Jerry Moran, R-Kan.; Sherrod Brown, D-Ohio; Deb Fischer, R-Neb.; Jeanne Shaheen, D-N.H.; Josh Hawley, R-Mo.; Ron Wyden, D-Ore.; Kirsten Gillibrand, D-N.Y.; Dick Durbin, D-Ill.; Maggie Hassan, D-N.H.; Angus King, I-Maine; and Bernie Sanders, I-Vt.
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CVR Energy Inc. released fourth quarter financial results on Feb. 18, reporting reduced renewable diesel production. The company also said it is pausing development of SAF capacity pending clarity on government subsidies.
CARB on Feb. 18 announced that amendments to its LCFS program that were approved in November 2024 have been put on hold following the California Office of Administrative Law’s decision to disapprove the amendments due to clarity issues.
The U.S. EIA reduced its forecast for 2025 biodiesel production in its latest Short-Term Energy Outlook, released Feb. 11. The forecasts for renewable diesel production and the production of other biofuels, including SAF, were maintained.
Calumet Inc. on Feb. 18 announced that its subsidiary Montana Renewables LLC has received the first drawdown of approximately $782 million from its $1.44 billion U.S. DOE loan guarantee. The loan will fund the expansion of SAF production capacity.
Neste Corp. on Feb. 13 released fourth quarter financial results, reporting that its renewables segment was impacted by both market and operational challenges during the three-month period. Sustainable aviation fuel (SAF) sales, however, were up.