Heitkamp Calls for Federal Policies That Support ND Biodiesel Jobs & Production

Press Release

U.S. Senator Heidi Heitkamp today called for the Administration and Congress to support policies that stand up for biodiesel jobs and production, rather than tear them down.

Joined by Terry Georger, a third generation farmer from Mantador, Heitkamp reinforced the potential detrimental impacts for farmers and producers because of the U.S. Environmental Protection Agency's (EPA) proposed rule to reduce the required amount of biofuels produced in the U.S. She also called for Congress to extend the biodiesel tax credit -- which expired on December 31, 2013 -- that aids future investment in biodiesel technologies and deployment. The tax credit is included in legislation the Senate is currently debating.

"Biodiesel has an incredible success story to tell. Farmers in North Dakota and throughout the country are supporting good jobs, reducing our dependence on foreign oil, and boosting rural communities," said Heitkamp, a vocal advocate against the EPA's proposed rule to weaken the Renewable Fuel Standard. "But instead of promoting these successes, federal policies are dragging our farmers and producers down. That's the wrong direction. In February, I brought EPA Administrator Gina McCarthy to North Dakota to talk with farmers and learn firsthand how proposed regulations impact them. And I'm going to continue pushing on the EPA and Congress to implement policies that stand up for our farmers and producers."

A new study from the National Biodiesel Board, shows that the lack of certainty of federal policies is already hurting farmers and producers that help our country become more energy independent. According to the findings, nearly 80 percent of U.S. biodiesel producers have scaled back production this year and almost 6 in 10 have idled production altogether. Additionally, two-thirds of producers said they have already reduced or anticipate reducing their workforce as a result of the downturn.

"This uncertainty is bad for producers, it's bad for agriculture, it's extremely bad for investors, it's bad for the environment, and it's particularly bad for those of us who took cues from Congress and the Administration and made the commitments to build a U.S. renewable fuels future," said Terry Georger. "I would like to thank Sen. Heitkamp for inviting me here today. We have known each other since we were kids and I sincerely appreciate her strong support for biodiesel and the RFS."

"The Renewable Fuel Standard is critical to the growth of biodiesel production in places like North Dakota," said Kyle Bahls, Plant Manager of Archer Daniel Midlands Velva, ND biodiesel manufacturing facility. "We appreciate Senator Heidi Heitkamp's leadership in supporting the Renewable Fuel Standard and the many good jobs it provides in North Dakota and across the country."

The EPA's proposed Renewable Fuel Standard rule would establish a biodiesel standard of 1.28 billion gallons this year, forcing many farmers and producers to shut their doors. But last year, biodiesel producers -- using products grown on farms in North Dakota and throughout the country, like canola and soybeans -- generated a record of nearly 1.8 billion gallons, with plants in almost every state in the U.S. supporting about 62,200 jobs. And biodiesel reduces greenhouse gas emissions by 57 percent to 86 percent compared to petroleum diesel.

The U.S. biodiesel tax credit provided a $1-per-gallon tax incentive that is proven to stimulate additional biodiesel production, and as a result, support good jobs, boost economic growth, reduce emissions, and support our energy security.

In February, Heitkamp brought EPA Administrator Gina McCarthy to North Dakota where they met with North Dakota farmers and biofuels stakeholders who reinforced the harmful impact the new proposed rule would have on producers. In January, Heitkamp called on McCarthy to reverse the EPA's decision to reduce the required amount of biofuels used in the U.S., and offer a new proposal that would promote investment in the next generation of biofuels.

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