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Biodiesel Board Blames Feds for Industry Slump

January 15, 2015

Total U.S. biodiesel consumption fell to 1.75 billion gallons in 2014, down slightly from nearly 1.8 billion gallons in 2013, according to data released by the U.S. Environmental Protection Agency (EPA).

The U.S. biodiesel market shrunk in 2014 amid policy uncertainty in Washington that destabilized the industry and caused many biodiesel plants to shut down or reduce production, reported the National Biodiesel Board (NBB).

The downturn came as the Obama administration failed to finalize biodiesel volumes under the Renewable Fuel Standard (RFS) and Congress allowed the $1-per-gallon biodiesel tax incentive to lapse at the beginning of 2014, the NBB also noted.

"These numbers reflect the consequences of policy inaction," said Joe Jobe, CEO of the NBB. "The drop in production represents lost jobs and economic activity. It represents a lost opportunity to reduce greenhouse gas emissions and other pollutants. And, it represents another year in which we fail to tackle our dangerous dependence on oil in the fuels sector."

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