EPA Hands Down Big Change for Biodiesel Producers

January 12th, 2016 by Fiedler Group

In its final Renewal Fuel Standard volumes, the Environmental Protection Agency (EPA) announced significant changes to the original law.

Now, the domestic level of biodiesel use is mandated to increase to 2 billion gallons, double the level required by the original law.

This is encouraging news for biodiesel advocates as the 2017 regulation would put future biodiesel operations at near capacity — 2.1 billion gallons.

Current biodiesel production has averaged 1.3 billion gallons across the last three years.

While this lift is positive for the biodiesel industry, the new regulation impacts other industries as well.

Oilseed and soybean producers — both of which are used to produce biodiesel (sometimes as much as 50 percent of the biodiesel feedstock) — also forecast significant increases in production to meet the 2017 mandate.

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