WASHINGTON, April 14, 2016 - The
strongest drivers
of the increase in U.S. biomass-based diesel demand since 2012 have been
increasing Renewable Fuel Standard (RFS) targets and the biodiesel tax credit,
which has lapsed and been reinstated several times, says the Energy Information
Administration (EIA).
After reaching their highest level to
date in 2013, U.S. imports of both biodiesel and renewable diesel fell in
2014 amid uncertainty surrounding future RFS
targets and the elimination of the biodiesel blenders tax credit, EIA
says.
As higher targets for
biomass-based diesel were finalized in 2015, U.S. imports of biodiesel and
renewable diesel increased by 61 percent in 2015 to reach 538 million gallons,
says EIA.
“These numbers again demonstrate
why we need to reform the biodiesel tax incentive to a domestic production
credit,” says Anne Steckel, VP of federal affairs with the National Biodiesel Board.
“We are seeing hundreds of
millions of gallons of biodiesel coming to the U.S. from places like Argentina
and Indonesia,” says Steckel. “These imports are often receiving significant
incentives at home and then getting another incentive when blended here in the
U.S. That creates a tremendous competitive advantage for the imports, and it’s
why we’re seeing the volumes grow so rapidly.”
The EIA says that of the 334
million gallons of biodiesel imported into the United States in 2015, more than
half (183 million gallons) were from Argentina.
Steckel says that American
biodiesel producers deserve a level playing field, and that U.S. energy policy
should be aimed at incentivizing domestic production and jobs, not foreign
fuel.
“Changing this incentive to a
domestic producers credit is a common-sense, cost-saving reform that Congress
should pass today,” says Steckel.
#30
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