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ACI Speaks Up for Oleochemicals

January 25, 2013

The US oleochemical industry will continue to be hard hit by the Environmental Protection Agency’s policymaking on the Renewable Fuel Standard (RFS2), according to the American Cleaning Institute (ACI), which represents the producers of oleochemicals.

“ACI regrets that, once again, the EPA has dismissed the concerns of the domestic oleochemical industry relating to the Renewable Fuel Standard’s impact on the price and availability of animal fats,” said Ernie Rosenberg, ACI president and CEO, in reference to a new requirement for the production of 1.28 billion gallons for biomass-based diesel for 2013.

“For eight years, since passage of the ‘American Jobs Creation Act of 2004,’ government policy has increasingly driven and subsidized the diversion of animal fats to biofuel production via tax credit supports and guaranteed markets under the RFS2,” he noted.“The use of animal fats for oleochemical production has historically allowed the domestic industry to compete in the global market by providing a cost competitive raw material. That competitive raw material edge is now being profoundly eroded.”

Rosenberg observed that by summarily dismissing ACI’s request to limit, not expand, the use of animal fats for biofuel production, the EPA has given a clear message that this issue must be resolved in Congress.

“ACI will therefore continue its efforts on the Hill to remove animal fats from all biofuel tax credit schemes, as well as the RFS2. While biofuels have an important place in our energy future, their success should not come at the expense of established industries which happen to share a raw material stock,” added Rosenberg.

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