The U.S. Environmental Protection Agency on Friday set an increase in the biodiesel required under the Renewable Fuels Standard from 1 billion gallons in 2012 to 1.28 billion gallons next year.
Bio-based diesel products are derived from a variety of sources that includes grains, vegetable oils and wastes oils.
“This action, which meets goals designated by Congress, is another step that strengthens America’s energy security by reducing dependence on foreign oil,” said EPA Administrator Lisa P. Jackson, in a statement.
The Obama administration’s move was praised by the agriculture industry.
“More than half of all biodiesel produced in the United States comes from soybean oil, which expands a growing market for soybean farmers,” said ASA President Steve Wellman, president of the American Soybean Association.
Wellman highlighted several benefits from biodiesel production that help U.S. livestock producers.
“Soybean-based biodiesel actually has a positive impact on U.S. soybean meal supplies,” he said. “Processing biodiesel from soybeans uses only the oil portion of the soybean, which is about 18-20 percent of the soybean, leaving the remaining 80-82 percent of the soybean available as protein to nourish both livestock and humans.
“By increasing the market for soybean oil in the United States and domestic oilseed processing, we increase the availability of protein-rich meal for human and livestock consumption,” Wellman explained. “The increased meal supply results in a more cost-effective food and feed source. In addition to soybean oil, biodiesel is made from a wide range of sources, including other agricultural oils such as canola, recycled cooking oil, and animal fats, enabling the majority of biodiesel producers to alternate feedstocks if prices increase or supplies decrease.”
"This was an incredibly important decision, and the Obama Administration got it right," added Joe Jobe, chief executive officer of the National Biodiesel Board, an industry trade association. "This decision will continue to diversify our fuel supplies so that we're not so vulnerable to global petroleum markets and this endless cycle of price spikes."
Biodiesel is produced in nearly every U.S. state and last year supported more than 39,000 jobs and $3.8 billion in GDP, according to a recent study conducted by Cardno ENTRIX, an international economics consulting firm. The 4.6 billion gallons of biodiesel produced in the United States since 2005 have displaced an equivalent amount of diesel fuel and reduced greenhouse gas emissions by 56.2 billion pounds, the equivalent of removing 4.96 million passenger vehicles from America's roadways.