February 13, 2017
BY Ron Kotrba
In continuation of the ongoing legal dispute over volumes set by the U.S. EPA under the renewable fuel standard (RFS) vs. statutory volumes required by Congress, the National Biodiesel Board filed a petition Feb. 10 asking the U.S. Court of Appeals to review EPA’s final volume standards for 2017 and the biomass-based diesel volume set for 2018.
“This is essentially a continuation of last year's petition,” said Anne Steckel, vice president of federal affairs for the National Biodiesel Board.
Last year, NBB joined several other parties to challenge EPA’s final RFS volumes the agency set for 2014-’16. One of NBB’s arguments is that EPA unjustifiably reduced overall advanced biofuel volumes in the 2014-’16 ruling based on its authority in the cellulosic waiver.
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“Congress sought to increase ‘production’ of renewable fuels and could not have intended EPA to base RFS volumes using an analysis so complex that EPA admittedly ‘cannot make reliable predictions,’” NBB argued in a reply brief filed Jan. 30. “EPA ignored Congress’s directives. Its approach has not ‘prioritized’ growth in advanced biofuels, as Congress envisioned. It prioritizes reducing obligated parties’ compliance costs. That approach deserves no deference. EPA eschewed the statute’s language, structure, and goals to give itself broad discretion. It ignored the weight of the evidence in favor of conclusory (and erroneous) statements—hallmarks of arbitrary action.”
Steckel said the new filings deal with issues similar to previous ones, “so this was a needed step to safeguard American biodiesel interests. American biodiesel is delivering growing quantities of advanced biofuels under the RFS. Considering advanced biofuels’ many benefits, and specifically carbon reduction impact, the EPA should be doing more to grow those volumes.”
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Oral arguments for the court case pertaining to the 2014-’16 RFS volumes are scheduled to begin April 24, confirmed Jessica Robinson, director of communications at the NBB. “It is typically three to six months after that the court will issue a final decision,” she said.
With the Feb. 10 filing, a court win for the biodiesel industry in the case over 2014-’16 RFS volumes would leave open the possibility to adjust up the 2017-’18 volumes.
The USDA has announced it will delay opening the first quarterly grant application window for FY 2026 REAP funding. The agency cited both an application backlog and the need to disincentivize solar projects as reasons for the delay.
CoBank’s latest quarterly research report, released July 10, highlights current uncertainty around the implementation of three biofuel policies, RFS RVOs, small refinery exemptions (SREs) and the 45Z clean fuels production tax credit.
The U.S. EPA on July 8 hosted virtual public hearing to gather input on the agency’s recently released proposed rule to set 2026 and 2027 RFS RVOs. Members of the biofuel industry were among those to offer testimony during the event.
The USDA’s Risk Management Agency is implementing multiple changes to the Camelina pilot insurance program for the 2026 and succeeding crop years. The changes will expand coverage options and provide greater flexibility for producers.
President Trump on July 4 signed the “One Big Beautiful Bill Act.” The legislation extends and updates the 45Z credit and revives a tax credit benefiting small biodiesel producers but repeals several other bioenergy-related tax incentives.