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Ag, Biofuels, Petroleum Industries Join Forces, Call For Boost in Multi-Year RFS Volumes

Todd Neeley
By  Todd Neeley , DTN Environmental Editor
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Biofuels, agriculture and petroleum groups called for a volumes boost to the Renewable Fuel Standard. (DTN file photo)

LINCOLN, Neb. (DTN) -- Though biofuels, agriculture, fuel retailers and petroleum groups have rarely agreed on the Renewable Fuel Standard, this week they asked U.S. Environmental Protection Agency to expand biofuels volumes in a new multi-year approach to the RFS.

On Wednesday, the Advanced Biofuels Association, American Farm Bureau Federation, American Petroleum Institute, American Soybean Association, Clean Fuels Alliance America, Growth Energy, National Association of Convenience Stores, National Association of Truck Stop Owners, National Oilseed Processors Association, Renewable Fuels Association and SIGMA: America's Leading Fuel Marketers, together asked new EPA Administrator Lee Zeldin to act on the RFS.

Though the EPA has yet to release already-late RFS volumes for 2026, the Trump administration also faces the prospect of putting forward what would be the second "set" rule on the RFS. The first set rule was finalized by the Biden administration and set RFS volumes for 2023-2025.

Industries such as biomass-based diesel have said the set rule sold their producers short because they were able to produce volumes above the RFS.

"While our organizations have not always agreed on every detail, we have joined together in recognition of the critical role liquid fuels serve in the American economy, to advance liquid fuels and ensure consumers have a choice of how they fuel their vehicles," the groups said in a letter to Zeldin on Wednesday.

The letter comes at a time when Congress is beginning work on a new budget bill that may see up to $2 trillion in cuts. Congressional Republicans have made clear their intention to cut funding for electric-vehicle subsidies in the Inflation Reduction Act, perhaps turning to funding the 45Z Clean Fuels Production tax credit, https://www.dtnpf.com/….

Cross-industry agreement on the RFS comes about after the Biden administration's push for EVs was nudging out liquid fuels.

"Since the enactment of the Renewable Fuel Standard, our nation has benefited from increased energy security, an enhanced agricultural industry, and lower carbon fuel options," the groups said in the letter to Zeldin.

"As the EPA begins work on policies that promote American energy and renewable fuels, we encourage the EPA to consider robust future renewable fuel volumes for 2026 and beyond. We believe strong, steady volumes for conventional biofuel targets, biomass-based diesel and advanced fuels would more accurately reflect the availability and ongoing investments in feedstocks and production capacity."

The letter continues, "Our industries will work to continue providing liquid fuels with the significant renewable fuel volumes that our country needs to fuel American growth. Additionally, we urge EPA to release multi-year standards for the RFS. Setting multi-year standards helps provide more certainty for obligated parties, renewable fuel producers, and other market participants. This certainty is critical for business planning and compliance, as well as longer-term stability to promote capital investment."

Todd Neeley can be reached at todd.neeley@dtn.com

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