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ASA Applauds EPA RFS2 Final Rule Favorable to
Biodiesel
February 3, 2010…Saint Louis, Missouri… The American Soybean
Association (ASA) today applauds release of
the Environmental Protection Agency’s (EPA) Final Rule for the Renewable
Fuel Standard Program (RFS2) that provides a positive outcome for
biodiesel and soy biodiesel. ASA has worked hard to educate EPA and
policymakers to correct flaws in the original RFS2 Proposed Rule issued
in 2009. Achieving a favorable outcome was vitally important as demand
for domestically produced soybean oil and the future of the biodiesel
industry in the United States hinged on the outcome.
EPA’s Final Rule demonstrates that soy biodiesel can achieve
significant reductions in Greenhouse Gas (GHG) emissions relative to petroleum diesel.
Even with the inclusion of questionable indirect land use variables, all
soy biodiesel is deemed by EPA to exceed the 50 percent reduction
threshold needed to qualify for the RFS2 biodiesel mandate.
"This favorable EPA ruling is absolutely critical to the continued
success of soybeans as a homegrown renewable fuelstock," said ASA
President Rob Joslin, a soybean producer from Sidney, Ohio. "ASA and the
biodiesel industry were able to demonstrate that some of EPA’s initial
calculations regarding direct and indirect emissions were significantly
flawed, and that the agency had used questionable indirect land use
assumptions."
RFS2 has been a top priority for ASA. The initial rule proposed by
EPA would have done unnecessary harm to the competitive position of the
U.S. soy biodiesel industry. ASA generated significant grassroots
support and provided extensive information during the EPA’s comment
period on RFS2, resulting in thousands of comments from soybean
producers and industry supporters being submitted to EPA.
EPA will require the combined 2009 and 2010 volume levels to be met,
which will require the utilization of 1.1 billion gallons of biodiesel
by the end of 2010, significantly energizing demand for U.S. biodiesel
producers.
ASA is also pleased that agricultural feedstocks produced in the U.S.
will be in compliance and no additional certification will be required
unless the baseline level of approved agricultural land is exceeded. EPA
will require certification for foreign feedstocks.
"ASA fought against the burdensome and unnecessary requirement that
renewable fuel manufactures prove that their feedstocks meet the
definition of renewable biomass," Joslin said.
"Biodiesel is the cleanest burning biofuel currently used in
commercial markets," Joslin said. "Biodiesel is a renewable and
sustainable energy source that can play a significant role in our
national efforts to increase our energy security and improve our
environmental footprint. Biodiesel has also provided a significant
market opportunity for U.S. soybean farmers and jobs and economic
development for rural communities."
While stressing the importance of the EPA’s RFS2 final rule to the
biodiesel and soy industries, Joslin emphasized that biodiesel
production likely won’t resume until Congress extends the biodiesel tax
incentive.
"The biodiesel tax incentive expired on December 31, 2009," Joslin
said. "Expiration of the tax incentive has essentially caused the
production and use of biodiesel in the U.S. to cease and has placed the
23,000 jobs that are currently supported by the domestic biodiesel
industry in immediate jeopardy. Companies have already started
laying-off employees, and this situation is certain to worsen the longer
the tax incentive is allowed to lapse."
ASA represents all U.S. soybean farmers on domestic and international
issues of importance to the soybean industry. ASA’s advocacy efforts are
made possible through the voluntary membership in ASA by over 22,500
farmers in 31 states where soybeans are grown.
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For more information contact:
Rob Joslin, ASA President, (937)
492-8440, rob@wrjoslin.com
Bob Callanan, Communications Director, (314) 576-1770, bcallanan@soy.org
Access this release at www.SoyGrowers.com/newsroom/news.htm
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