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Policy Swings Shutter Iowa's Biodiesel Plants

RFS faces uncertain future after 2022 when congressional mandates end

Car fueling up

Congress only recently renewed a $1/gallon tax credit for biodiesel producers and blenders, after it had expired two years earlier — and the credit is set to disappear again in 2022, reports E&E News.

The RFS, which requires the blending of biofuels, including biodiesel, into the nation's fuel supply, faces an uncertain future after 2022, when congressional mandates end and EPA assumes full responsibility for setting biofuel volumes.

Nationwide, biodiesel production has been lower every month, compared with a year earlier, since June. Ten biodiesel plants closed in 2019, taking 250 million gallons of capacity offline and furloughing 265 workers, according to the National Biodiesel Board, an industry group.

The biodiesel industry blames federal policies, including a drop in renewable fuel credit prices brought on by ethanol-blending waivers EPA granted to small refineries, and the two-year lapse in the biodiesel tax credit.

Read the full report here.

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