Ethanol Blog

LINCOLN, Neb. (DTN) -- Agriculture and biofuels groups are pressing U.S. Environmental Protection Agency Administrator Lee Zeldin to not only propose and finalize 2026 Renewable Fuel Standard volumes as soon as possible but to set biomass-based diesel volumes at least 5.25 billion gallons, in a letter to Zeldin on Monday.

Volumes for 2026 should have been finalized by November 2024 and were pushed back a year by the Biden administration.

Clean Fuels Alliance America, American Farm Bureau Federation, American Soybean Association, National Oilseed Processors Association, North American Renderers Association and the U.S. Canola Association also asked Zeldin to finalize a "commensurate" increase in overall advanced biofuel volumes.

"Setting these volumes for 2026 and establishing consistent growth for 2027 and beyond based on the industry's investments and projections will ensure that American consumers can access affordable and clean transportation options," the letter said.

"These volumes will support farm security, create jobs and economic opportunity and further President Trump's goal for U.S. energy dominance."

The last RFS volumes rule finalized was done so in June 2023, https://www.dtnpf.com/…, which was a multi-year set rule.

"Following substantial investments in both biofuel production and feedstock supply over the past several years, domestic production of clean fuels has doubled -- biodiesel and renewable diesel currently meet 9% of U.S. on-road diesel demand -- and is poised to continue growing," the letter said.

"The industry is delivering innovative new fuels such as the first commercially available SAF (sustainable aviation fuel). Clean fuels provide Americans a cost-effective choice at the pump; prices for B20 averaged $0.14 lower than prices for diesel since 2021. They support economic opportunities for farmers and rural communities. And they support farm prosperity and security by building vital markets for agriculture, by adding value to every bushel of soybeans and canola grown in the United States, and by making use of waste materials such as fats rendered from American-raised livestock."

The groups said the RFS volumes for 2023-2025 "failed to support the rapid growth" of the advanced biofuel industry and "undercut" the market.

"This is sending a negative signal to the market that is forcing producers to idle -- undercutting investment, economic opportunity and jobs," the letter said.

"It is impeding the development of reliable and affordable domestic fuels and inflicting higher fuel costs on consumers. The EPA recently acknowledged the need for a step change in biomass-based diesel and advanced biofuels volumes, noting that the available credits for 2024 exceed the required volumes by 2.6 billion. The oversupply of credits is a direct result of EPA setting volumes significantly below production trends."

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

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