Biodiesel Producers Join Agriculture, Community Leaders at REG Newton Urging President Trump to Reject EPA, Petroleum Efforts...
October 10 2017 - 5:32PM
Two weeks after calling EPA’s notice announcing potential cuts to
biodiesel volumes under the Renewable Fuel Standard a
‘bait-and-switch’ tactic, Senator Chuck Grassley spoke directly
Tuesday with those the proposal would harm. At Renewable
Energy Group’s (NASDAQ: REGI) Newton, Iowa biorefinery, the message
from Grassley and the industry was clear---the President should
keep his promise and not just protect, but grow biodiesel volumes.
A photo accompanying this announcement is available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/193df62b-758a-4df8-8c3b-971b4159c3ae
Grassley was joined by biodiesel producers, soybean and corn
farmers and other industries supported by biodiesel to discuss the
notice from EPA seeking comments on reducing minimum volumes for
biomass-based diesel for 2018 that were finalized almost a year
ago, as well as further reductions to the proposed 2019
volumes. The reductions are being sought by petroleum
refiners despite growing global demand for diesel and the proven
ability by U.S. biodiesel producers to meet growing RFS
targets.
“This proposal would drastically undermine biodiesel
production,” Grassley said. “It’s contrary to the statements
made by then-candidate Trump and President Trump. It’s not
consistent with what EPA Administrator Pruitt told me in January
when I spoke to him in my office prior to his confirmation.”
Agriculture leaders agreed. “This is a serious issue for Iowa
and U.S. agriculture at a time when the farm economy is already
enduring a downturn,” said Grant Kimberley, Executive Director of
the Iowa Biodiesel Board, and Iowa Soybean Association’s Director
of Market Development. “We already have excess feedstock
capacity due to a surplus of corn and soybeans on the market, which
has lowered commodity prices. We do not believe this is what
President Trump wants for rural communities.”
Newton community leaders stressed how the positive impact of
biodiesel extends beyond renewable fuels and agriculture.
“Most biodiesel facilities across the US are located in small
towns and rural communities and their continued existence is
critical to the survival of rural America,” said State Senator Chaz
Allen, who also serves as head of the Jasper County Economic
Development Corporation. “Newton knows how important jobs and
economic development are – we’ve experienced hard loss
before. Small rural communities like ours need industries
like this if we are to ever grow.”
Grassley also spoke about his continuing effort to re-instate
the federal biodiesel tax credit, which lapsed at the end of 2016,
and reform the incentive to focus it strictly on domestically
produced biodiesel. Grassley’s bi-partisan legislation, the
American Renewable Fuel and Job Creation Act of 2017 (S. 944),
would retroactively re-instate the credit beginning January 1, 2017
and extend the incentive through December 31, 2020. A House
companion bill (H.R. 2383) mirrors Grassley’s legislation.
“A credit for domestic production will ensure we’re
incentivizing the domestic industry, rather than subsidizing
imported biodiesel,” he said. “We should not provide a U.S.
taxpayer benefit to imported biofuels. A producer credit will
do what Congress intended – incentivize investment in U.S.
biodiesel production.”
REG leaders joined the group in thanking Grassley and other
lawmakers for their efforts to pull back the EPA proposal and for
their efforts for the “common sense tax reform” for the biodiesel
industry.
“We urge President Trump to keep his promise,” said Brad Albin,
REG Vice President of Manufacturing. “This is about so much
more than biodiesel. It’s about hundreds of thousands of
American family famers and small business owners, rural communities
around the country like Newton, and the more than 64,000 jobs this
industry supports. Biodiesel is a proven success and the best news
is we have the capacity, feedstocks and the demand to do so much
more.”
About Renewable Energy Group
Renewable Energy Group, Inc. (NASDAQ:REGI) is a leading provider
of cleaner, lower carbon intensity products and services. We are an
international producer of biomass-based diesel, a developer of
renewable chemicals and are North America's largest producer of
advanced biofuel. REG utilizes an integrated procurement,
distribution, and logistics network to convert natural fats, oils,
greases, and sugars into lower carbon intensity products. With 14
active biorefineries, a feedstock processing facility, research and
development capabilities and a diverse and growing intellectual
property portfolio, REG is committed to being a long-term leader in
bio-based fuel and chemicals.
Media ContactAnthony
HulenExecutive Director, Corporate
Affairs+ (703)
822-1972anthony.hulen@regi.com
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