Renewable Energy Group, Inc. (NASDAQ:REGI) President and CEO Daniel J. Oh issued the following statement after EPA’s release of the proposed rule for Renewable Volume Obligations (RVO) biomass-based diesel for 2014-2017 and overall advanced biofuels for 2014-2016:
“We are positive about today’s EPA announcement related to proposed biomass-based diesel volumes for 2014-2017 and overall advanced biofuels for 2014-2016. This proposal reduces uncertainty and points towards continuing growth for the near future and beyond. We are very appreciative of our champions on Capitol Hill and within the administration who worked tirelessly over the last several months to move RVO numbers upward to where they are now. It is complicated to manage policy and politics and we believe the numbers show that federal policy is heading in the right direction. This is a significant improvement over the original 1.28 billion gallon 2014 D4 proposal. Considering a potential 20% RIN carry-over, the proposed RVO suggests biomass-based diesel usage levels at over 2 billion gallons per year.
“We believe this proposal leaves room to grow D4 (biomass-based diesel category) and D5 (general advanced biofuel category) final RVOs as REG and our industry continue to deliver increasing amounts of high-quality, cleaner and lower carbon advanced biofuel. When the EPA and OMB next look towards market performance, they should have every reason to believe that the biomass-based diesel category will continue to grow and support ever greater usage throughout the country.”
