National Biodiesel Board 

November 17, 2015 

OMB Meeting November 17. 2015

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Biodiesel Growth

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 Reducing Greenhouse Gas Emissions 

 Biodiesel is cleaning up Diesel Fuel and Home Heating Oil (BioHeat) 

 Made in the USA -- Increasing Commercial Scale Production of the “World’s Best Fuel” –

Domestically. 

 Room to Grow -- Today 60 billion gallon largely untapped Diesel Pool – there is plenty of room for 

growth for biofuels. 

 Green Jobs -- small volume increases in 2016 and 2017 create thousands of new green 

manufacturing jobs. 

 Increasing Domestic Energy Security for Transportation Fuels

 Protects against OPEC Dictating Global Petroleum Prices

 Decreasing the Cost of Diesel Fuel to Consumers 

Biodiesel -- Helping President Obama Meet His Goals

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4

Total 

Renewable 

Fuel

Advanced Biomass

Based Diesel +

Non -Cellulosic

Advanced + = Total Advanced CellulosicAdvanced

Conventional 

Renewable 

Fuels

Total 

+ Advanced =

15.00

1.75

1.8

1.9

Existing Law – Minimum Volumes as Set Forth in EISA 

(Reminder: EPA Sets Standards Each November – To ensure “at least” statutory volumes.)
RFS Can Contribute Substantially To Achieving US CO2 Commitments

• US commitment to reduce CO2 emissions by 26% by 2025 

• Transportation represents more than a quarter of total US CO2 emissions, and has furthest to go 

in reducing CO2 emissions

• Biodiesel is highly effective at reducing CO2 emissions from transportation

 81% CO2 reduction relative to petroleum diesel (avg of current feedstock mix)*

 100 gallons biodiesel = 1 metric ton CO2 reduction

• Increased use of biodiesel can contribute substantially to US CO2 commitments

 Increasing biodiesel by 350 MM gal/yr through 2025 will achieve 18% of transportation sector CO2 

reduction target

 Equivalent to removing 11.5 million cars from highways – 56 MM metric tons/yr

• *Based on EPA estimates.

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RFS Is A Policy Tool That Is In Place And Effective

• Increasing US biodiesel via RFS is comparatively simple

 No infrastructure or vehicle modifications required

 No implementation or jurisdictional complexities

 Other policy approaches require changing behavior of consumers and/or industry

 RFS has demonstrated track record of success in stimulating US biodiesel investment

• RFS is effectively invisible to end users of diesel fuel

 Biodiesel is a highly cost-effective means of reducing CO2 – available NOW

 Substantial capacity available to expand US production

 Data show little or no pass-through of costs to consumers

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Biodiesel Has A Significantly Lower Carbon Footprint Than Petroleum Diesel

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The Transportation Sector Has A Long Way To Go To Meet US Commitments To Achieve A 

26% Reduction In CO2 Emissions By 2025

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There Is Abundant Available US Capacity To Increase Biodiesel Production Far Above The 

EPA-Proposed Volumes – Now And Well Into The Future

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Biodiesel Imports

0

200

400

600

800

1000

1200

1400

1600

2012 2013 2014 2015 2016

53 MG

544 MG 

313 MG

712 MG

850 MG

1.047 MG

1.38 MG 1.42 MG 1.3 MG 1.3 MG

Imported Gallons (MG)

Year

*2015, 2016 est. projected imports

Biodiesel Imports to U.S.

(millions of gallons)

Domestically 

Imported fuel

Data collected from U.S. EPA EMTS 

0

500

1000

1500

2000

2500

3000

3500

53 MG

544 MG

313 MG

712 MG

850 MG

1 BG

Imported Gallons (MG)

Year

*includes actual, annualized and projected data

Biodiesel Imports to U.S.

2012 - 2016*

Total Imports 2012 - 2017 = 3.4 billion 

gallons* 

2016

2015

2014

2013

2012

10
0

10

20

30

40

50

60

70

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

July

Aug

Sep

Oct

2012 2013 2014 2015

Cents per Pound

Soybean Oil (Illinois) crude/degummed

Canola Oil -RBD (Chicago)

Bleachable Fancy Tallow - Renderer (Chicago)

Choice White Grease (Chicago)

Yellow Grease (New York)

Feedstock Prices

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$0.52 $0.49 $0.43 $0.35 $0.30 $0.26 $0.26 

$4.50

$4.26

$3.70

$3.16

$2.74

$2.37 $2.33

 $-

 $0.10

 $0.20

 $0.30

 $0.40

 $0.50

 $0.60

 $-

 $0.50

 $1.00

 $1.50

 $2.00

 $2.50

 $3.00

 $3.50

 $4.00

 $4.50

 $5.00

2011 2012 2013 2014 2015F 2016F 2017F

Dollars per Gallon

Dollars per Pound

Average Price of Feedstock Cost of Feedstock per Gallon Cost of Production

Vegetab

le oil

52%

Distiller 

Corn Oil

11%

Animal 

Fats & 

UCO

37%

2015

Vegetabl

e oil

52%

Distillers 

Corn Oil

19%

Animal 

Fats & 

UCO

29%

2017

Cost of Production (2011-2017)

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5.15

9.87 9.53

3.56

5.15

9.83 9.48

3.27

5.15

9.60 9.40

2.70

0.0

2.0

4.0

6.0

8.0

10.0

12.0

2015 2016 2017 2018 Billion Dollars

Baseline: EPA Proposed SC 1: Minimum D4 VO SC 2: Realistic D4 VO

US Farm Program Payments

(ARC & PLC)

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Reduced Feed 

Costs Due to 

Lower Meal 

Values

Increased 

Revenue Due to 

Higher Animal Fat 

Values

Glycerin Provides an Additional Energy 

Source for Feed Rations to Help 

Mitigate Risk

How Does Increased Biodiesel Production Impact Livestock Production?

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 -

 440

 880

 1,320

 1,760

0%

10%

20%

30%

40%

50%

2011 2012 2013 2014

Lowest Carbon Feedstock %

Biodiesel Gallons (Millions)

Biodiesel use of lowest carbon feedstocks 

Biodiesel production Distillers corn oil, animal fats, recycled oils/greases

42%

9%

15%

15%

17%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011 2012 2013 2014

Feedstock shares for biodiesel

(including renewable diesel) Other

Recycled

oils/grease

s

Animal fats

Distillers

corn oil

Canola Oil

Soybean oil

Source: EPA EMTS production data; feedstock data for biodiesel from EIA Monthly Biodiesel Production Report; assumed equal renewable diesel feedstock shares from DCO, animal 

fats, recycled oils

Share Of Biodiesel Production From Lower Carbon 

Footprint Feedstocks Has Increased, Even With Rising 

Biofuel Production

Biodiesel Increasingly Utilizes A Diverse Range Of 

Feedstocks

15
 -

 440

 880

 1,320

 1,760

$0.00

$0.70

$1.40

$2.10

$2.80

$3.50

2011 2012 2013 2014

Biodiesel Gallons (Millions)

$/gal of biodiesel

Cost of lowest carbon feedstocks

Biodiesel production

Distillers corn oil, animal fats, recycled oils/greases

Source: EIA Monthly Biodiesel Production Report (February 2015); feedstock prices from 

Jacobsen, translated to $/gal assuming 7.5 lb/gal

Increased Biodiesel Production Is Not Constrained By 

Available Feedstocks

Lowest Carbon Feedstocks Have Fallen In Price, While 

Biodiesel Production And The Share Of Low-Carbon 

Feedstocks Have Increased

Source: LMC International, “Current and Future Supply of RFS2 Qualifying and Non-qualifying Oils and Fats for 

Biofuels,” July 2013

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2.4 bill gal

0.4 bill gal

0.8 bill gal

Biodiesel Production Capacity

3.6 billion gallons

Registered facilities producing

biodiesel

Facilities registered, but not

currently producing biodiesel

Production facilities not yet

registered under RFS

Source: Biodiesel plant list 2-6-13 from Docket EPA-HQ-OAR-2013-0479; numbers are from a combination of NBB, EIA, and EPA databases.

Biodiesel Production Increases Are Not Constrained By Available Biodiesel Capacity

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Managing The Biomass-based Diesel/ Advanced Biofuel Balance: Inducing 

Innovation – Reducing Blend Wall Pressure 

Keep the Advanced Program at the Statutory volumes of 5.5 and 7.25 BG respectively for 2015 

and 2016. 

Over 10 billion RIN gallons of Advanced Biofuels are registered at EPA. 

Biodiesel and Renewable Diesel will generate at least 3 BG of Advanced Biofuels in 2015.

• BBD and Brazilian Ethanol are proven Advanced Biofuels at scale.

• Increasing BBD ensures volumes in largely untapped diesel fuel market, reducing 

pressures on gasoline and ethanol.

• But other AB technologies can still emerge, and EPA must support increasing volumes 

overall.

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Consumers Benefit From Biodiesel 

 Biodiesel lowers cost at the pump for consumers.

 Lowers the cost of Heating Oil in the Northeast .

 Decreases GHG and Air Emissions, including in NYC 

and the Nations’ Cities through Local Bus and Heating 

Oil Programs like those in New York City, San 

Francisco, Denver and Dallas.

 Supports the rural economy, including moving toward 

sustainable agriculture and reduced food costs.

 Fuels Distribution System is already in place to add 

more biodiesel to the marketplace. 

 Engines and Engine Manufacturers Like Biodiesel (B20 

blends and higher).

Baltimore Maryland

B5 No2 Unbranded 

Ultra-Low Sulfur Diesel 1.655 07/24/2015

Baltimore Maryland

No2 Unbranded UltraLow Sulfur Diesel 1.66 07/24/2015

CADDO MILLS Texas

B5 No2 Unbranded 

Ultra-Low Sulfur LED 

Diesel 1.6805 07/24/2015

CADDO MILLS Texas

No2 Unbranded UltraLow Sulfur LED Diesel 1.682 07/24/2015

CAPE 

CANAVERAL Florida

B5 No2 Unbranded 

Ultra-Low Sulfur Diesel 1.74 07/24/2015

CAPE 

CANAVERAL Florida

No2 Unbranded UltraLow Sulfur Diesel 1.75 07/24/2015

CORAOPOLIS

Pennsylvani

a

B5 No2 Unbranded 

Ultra-Low Sulfur Diesel 1.6599 07/24/2015

CORAOPOLIS

Pennsylvani

a

No2 Unbranded UltraLow Sulfur Diesel 1.6752 07/24/2015

CORAOPOLIS

Pennsylvani

a

No2 Unbranded UltraLow Sulfur Diesel 1.6672 07/24/2015

CORAOPOLIS

Pennsylvani

a

B5 No2 Unbranded 

Ultra-Low Sulfur Diesel 1.6722 07/24/2015

CORPUS 

CHRISTI Texas

B5 No2 Unbranded 

Ultra-Low Sulfur Diesel 1.6295 07/24/2015

CORPUS 

CHRISTI Texas

No2 Unbranded UltraLow Sulfur Diesel 1.6315 07/24/2015

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A Proven Track Record

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21
22
1.35

1.74

1.66

1.9

1.1

1.8

1.7

1.85

2012 2013 2014 2015

0

0.2

0.4

0.6

0.8 1

1.2

1.4

1.6

1.8 2 Billion Gallons

NERA High Volume Scenario

Biomass-based Diesel Fuel

Production

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NERA asserts diesel prices will increase 4,000% in 2015

NERA makes this assertion even though its new report was released in August 

2015 and diesel prices had been dropping all year long while biodiesel 

production increased

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What Now – A pragmatic and credible path forward

Ensuring meaningful (and more than reasonable) increases in Biomass-based diesel furthers the goals of 

Congress (and moves the Country forward on this Administration’s climate plans)

Agreement: 

Biodiesel is cost-effective in reducing US CO2 emissions, 

Biodiesel can play an important role in helping the US to meet its commitments to reduce CO2 emissions. 

There is no limitation on ability to use biodiesel, and there is ample US production capacity and feedstocks 

available to increase US production and consumption well above the EPA’s current proposed volumes for 

2015 - 2017. 

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What Now – A pragmatic and credible path forward

Yet... two troubling themes arose in the most recent proposal, one from EPA (surprisingly) and the other from 

the American Petroleum Institute (unsurprisingly).

EPA’s (surprising) departure from its prior actions and Congressional intent:

• In its most recent RFS proposal, one of the reasons the EPA gave for its anemic biodiesel volume proposal 

for 2015 – 2017 was the desire to maintain “flexibility” and allow competition to fill up the advanced biofuels 

category. 

• But, this ignores the distinct diesel market and is counter to EPA’s purported concerns about the constraints 

on use of ethanol, and sugar ethanol is the only other major advanced biofuel available.

• More important, such “flexibility” concerns are beyond the scope of EPA’s authority and entirely irrelevant in 

setting the 2015 – 2017 biomass-based diesel volumes.

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What Now – A pragmatic and credible path forward

The sky is not falling as a result of the RFS...The second theme we have heard is the continued 

drumbeat by API of the alleged negative impact of the RFS on retail prices. 

The API has reiterated this theme in a recent study they commissioned (from NERA consulting), predicting 

that expanding RFS volumes will have immediate and catastrophic impacts on retail prices and the US 

economy – absurdly blaming biodiesel for much of that asserted negative impact (the study is 

fundamentally flawed for a host of reasons). We do not know how much of this API fear-mongering is 

stoking concerns at EPA or elsewhere about increasing RFS biodiesel volumes, but we feel that the danger 

is exactly the opposite: 

• biodiesel is currently providing important retail price competition at the pump to petroleum, diversifying 

this nation’s energy supply and increasing energy independence and national security; 

• there have been no measurable retail price effects of RFS to date (on either blended diesel or blended 

gasoline prices); and 

• a failure to increase the biodiesel volume now will lead to a reduction in significant current unused US 

production capacity – production capacity that could be used to increase competition in fuels to the 

benefit of US consumers, as well as to generate additional employment and income in rural communities 

throughout the US. 

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What Now – A pragmatic and credible path forward

We have heard the RFS as being a key component to the Administration’s plans to reduce GHG emissions over 

which the Administration is engaged on a lot of fronts. The Administration has set an ambitious reduction target 

for 2025 and faces hard fights, as it continues to promote new technologies and seeks world-wide consensus.

Now in the middle of this struggle, we are giving this Administration a nice easy pitch, right up the middle: 

whether to significantly increase biodiesel volumes under the RFS. 

No limits on use, plenty of capacity, plenty of feedstocks, all with existing technology, and with a lot of 

additional domestic jobs thrown in for good measure. 

At best, EPA’s recent proposal is an attempt at a “bunt” when Congress told EPA to swing for the fences and 

make real advancements. But EPA’s current overly cautious proposal is just a waste of a terrific – and rare –

opportunity to make a meaningful contribution towards meeting the US’ climate goals; and it puts at risk a lot of 

investments made by the industry in the expectation of significant continued increases in the RFS biodiesel 

volumes.

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Questions?

asteckel@biodiesel.org

202-737-8801

@annesteckel

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