Most robust biomass-based diesel volume in RFS program history will drive rural economic recovery |
| WASHINGTON, DC – Today, Clean Fuels Alliance America thanked the Environmental Protection Agency for finalizing robust biomass-based diesel volumes in the 2026-27 Renewable Fuel Standard rule. The RFS rule provides much-needed certainty to biodiesel and renewable diesel producers and other stakeholders in the clean fuel value chain, including farmers, feedstock providers, and oilseed processors.
Kurt Kovarik, Clean Fuels’ Vice President of Federal Affairs, stated, “The entire U.S. clean fuel industry – from farmers and feedstock providers to fuel customers – is grateful to see this rule finalized. U.S. biodiesel, renewable diesel, and SAF producers are eager to get to work and bring the 7 billion gallons of existing production capacity up to speed to meet 10% or more of America’s demand for diesel fuel.”
In 2025, biodiesel and renewable diesel facilities were forced to shut down or run far below prior-year production levels due to market uncertainty. U.S. biodiesel production declined by one-third in 2025, compared to 2024.
Kovarik continued, “The robust biomass-based diesel volumes set in this rule support America’s farmers and consumers. Biodiesel and renewable diesel represent 10% of the value of every bushel of U.S.-grown soybeans, contributing to President Trump’s desire for American energy dominance and domestic market demand for agriculture commodities. American farmers and other feedstock providers are eager for the growing domestic clean fuel market to drive value in agriculture, along with economic growth and job creation in rural communities. American consumers are desperate for secure, affordable domestic energy. Today’s rule is a clear win for the nation’s energy security.”
Last year, Clean Fuels coordinated with all industry stakeholders to advocate a robust RFS biomass-based diesel volume of at least 5.25 billion gallons for 2026. EPA delivered effective volumes of 8.86 billion RINs for 2026 and 8.95 billion RINs for 2027.
EPA is setting supplemental volumes to account for the economic harm that small refinery exemptions inflict on U.S. farmers, oilseed processors, and the biomass-based diesel industry: 210 million gallons in 2026 and 250 million gallons in 2027. EPA’s rule also contains a mechanism to account for projected small refinery exemptions in 2026 and 2027; this will ensure that the required volumes set today are met over the next two years. |
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