EPA Proposes Biodiesel Gallon Cut

The Environmental Protection Agency has published a notice proposing to cut back the Renewable Fuel Standard biodiesel numbers more than they had initially proposed. Lowering the volume by nearly 500 gallons to 3.77 billion.

The EPA claims that biodiesel dumping issues and tax credits are making advanced biofuels like biodiesel too expensive compared to the petroleum fuels it replaces.

Donnell Rehagen is CEO of the National Biodiesel Board, he says the EPA has legitimate concerns but it's the job of Congress to fix those problems.

Until they do, EPA Administrator Scott Pruitt had promised to uphold the rules of Congress.

Rehagen says, "The intent of Congress is very clear and that is to expand and grow biofuels. And what he is actually suggesting is exactly the opposite. When given the chance to grow them, which the RFS and his agency can do. He's choosing to cut them."

The National Biodiesel Board plan to respond to the comment period for the next 15 days. It also plans to reach out to the EPA and Congress to explain why they think it's important to the U.S. and agriculture economies for biodiesel numbers to grow.

Iowa Senators Chuck Grassley and Joni Ernst have both urged the EPA not to lower renewable fuel volumes.