Iowa groups challenge new biodiesel blending levels

Iowa agriculture and biodiesel industry groups say the 2023 renewable fuel standard (RFS) volumes signed yesterday are inconsistent with projected biodiesel growth and President Joe Biden's carbon emission goals.

The RFS's projected 60mn USG growth in biodiesel for 2023 is low compared to projections made by other agencies, according to The Iowa Soybean Association and Iowa Biodiesel Board. The Energy Information Administration (IEA) predicted 500mn USG of biodiesel and renewable diesel growth in 2023, for example.

The Environmental Protection Agency, which manages the RFS program, is requiring a 190mn USG increase in biodiesel blending by 2025 from the 2.76bn USG blended today.

"This small increase in growth would send negative signals to the market," said Dave Walton, director of both Iowa industry groups. The groups want to see "more aggressive growth, in the true spirit of the RFS," arguing that the current proposals contradict the Biden administration's goals to quickly reduce carbon emissions.

Other biofuel industry groups, such as Clean Fuels Alliance America, have also challenged the proposed growth targets.

Iowa is a major producer of soybeans, the primary feedstock for biodiesel, and home to 11 biodiesel plants.

By Nathan Risser