Policy Uncertainty Shrinks US Biodiesel Market

John Davis

nbb-advancedThe U.S. biodiesel market was a bit smaller in 2014, and policy uncertainty in Washington is being blamed for the decrease. The National Biodiesel Board says the destabilization of the industry, including the Obama Administration’s failure to finalize biodiesel volumes under the Renewable Fuel Standard (RFS) and Congress allowing the biodiesel tax incentive to lapse at the beginning of 2014, caused many biodiesel plants to shut down or reduce production, dropping total U.S. biodiesel consumption to 1.75 billion gallons for the year, down slightly from nearly 1.8 billion gallons in 2013.

“These numbers reflect the consequences of policy inaction,” said Joe Jobe, CEO of the National Biodiesel Board (NBB), the industry trade association. “The drop in production represents lost jobs and economic activity. It represents a lost opportunity to reduce greenhouse gas emissions and other pollutants. And it represents another year in which we fail to tackle our dangerous dependence on oil in the fuels sector.”

“The numbers would have been even lower had the EPA not signaled throughout the year that it will strengthen the RFS proposal and finalize it promptly,” Jobe said. “But companies can operate on faith for only so long. We have already seen many producers close their doors, and many others are struggling to stay open as we enter a New Year with continued uncertainty.”

Jobe went on to say that it’s frustrating because it is completely unnecessary and urged the Obama administration and Congress to put smart policies back in place.

Biodiesel, NBB