EPA Targets Biofuel Imports and Biodiesel, HUH?
by Anthony Adragna (Politico’s Morning Energy) EPA wants to cut imports of biofuels, but the biodiesel and advanced biofuels industries are mystified as to why it’s getting into that arena, Pro’s Eric Wolff reports . EPA cut back advanced biofuels, and it’s inviting comment on cutting back advanced biodiesel, all in the interest of reducing imports from Argentina, Indonesia and Brazil. The National Biodiesel Board has a case against Argentina and Indonesia under investigation by the Commerce Department now, and biodiesel producers see that as a separate process from EPA. “It’s not really their purview,” said Gene Gebolys, CEO of biodiesel producer World Energy. “It’s a strange logic – What makes one conclude that by holding volumes down, it will reduce imports? That makes a logic assumption that says the imports are the last in the door, and that’s not the case.”
Will it calm the RIN-sanity? Advanced biodiesel plays a critical role in meeting RFS targets, thanks to the system of “nesting” which allows refiners to buy biodiesel credits to comply with the conventional biofuel mandate. If victorious, duties on imported biodiesel will likely drive up prices for credits across the board, Neelesh Nerurkar a vice president at ClearView Energy partners. However, EPA’s reduction in the advanced and thus overall fuel requirement could relieve some of that pressure. “It helps mitigate some of the potential cost impact,” he told ME. READ MORE