SWBA Supports Interim EPA Rule on Biodiesel Standards

Business Wire, June 24, 2009

ALBUQUERQUE, N.M. -- The Southwestern Biofuels Association (SWBA) (www.swbiofuels.org) today joined Sen. Tom Udall (D-NM), Rep. Martin Heinrich (D-NM) and Rep. Ben Ray Lujan (D-NM) in urging the U.S. Environmental Protection Agency (EPA) to consider an interim rulemaking to help the U.S. biodiesel industry remain viable in the marketplace until EPA issues final Renewable Fuel Standard (RFS) rules in 2010.

“Domestic producers are faced with a lack of a market in the U.S., despite the clear intent of Congress to create one starting in 2009,” the New Mexico members wrote in a June 24, 2009, letter to EPA Administrator Lisa Jackson. “Unfortunately, the prior EPA Administration failed to issue the updated RFS rules, despite the fact the Congress required them to do so no later than Dec. 19, 2008.”

The 2007 Energy Independence and Security Act (EISA) directed EPA to ensure that fuel sold in the United States contains a minimum volume of renewable fuel, including biodiesel. The RFS program is intended to set a requirement of 500 million gallons of biodiesel to be blended into diesel fuel in 2009 increasing to at least 1 billion gallons in 2012 and beyond.

“The delay in implementation of final RFS rules has serious implications for the biodiesel industry,” said Vaughn Gangwish, executive director of the SWBA. “Biodiesel is a proven technology and an important part of the current Administration’s blueprint for energy independence. But our producers cannot compete without immediate action by the EPA.”

“The oil industry is not going to purchase biodiesel without a mandate. It simply is not in their best interest,” said Jeff Trucksess, executive vice president of Green Earth Fuels (www.greenearthfuelsllc.com). “Without the RFS, the biodiesel industry may not survive until 2010. Ironically, unless we get immediate help from the EPA, there will be no entrepreneurs and small businesses left to fulfill the requirements. Worse, there will be no experienced investors interested in commercializing the second generation of alternative fuels, such as camelina or other crops suitable for New Mexico, if we let this first generation die.”

“By asking EPA to consider its authority to issue an interim rule under EISA, the New Mexico delegation is once again leading the fight for clean, renewable energy,” Gangwish said. “Sen. Udall and Congressmen Heinrich and Lujan today acted not only for energy independence but to save thousands of jobs and to support the economies of rural communities across New Mexico and the country as well.”