Ethanol Blog

LINCOLN, Neb. (DTN) -- Six biodiesel, soybean and canola oil associations asked President Donald Trump to finalize Renewable Fuel Standard volumes to help alleviate diesel supply disruptions from the ongoing U.S. conflict with Iran, in a letter sent to the White House on Tuesday.

The letter is signed by Clean Fuels Alliance America, the American Soybean Association, National Energy and Fuels Institute, National Oilseed Processors Association, North American Renderers Association and the U.S. Canola Association.

"The biodiesel, renewable diesel and SAF (sustainable aviation fuel) industry is ready to meet the challenge of providing crucial supplies of diesel fuel free from overseas threats," the groups said in the letter.

"The RFS rule should be finalized as quickly as possible. Continued delays in finalizing and publishing the RFS rule would extend market uncertainty for farmers and stakeholders across our value chain as well as exacerbate the recent spike in diesel fuel prices."

The groups said the disruption in the global oil market is "constraining" diesel fuel supplies, which "threatens to raise the cost of all U.S. consumer goods and further harm the U.S. agriculture sector" as farmers start this season's planting.

Immediately finalizing the 2026 and 2027 RFS would "encourage" the U.S. clean fuel industry to quickly ramp up enough production capacity to meet 3% of the nation's demand for diesel, the said.

According to a report from Reuters, the White House reportedly is planning to host a biofuels event next week as the industry awaits the final RFS volumes rule.

"America's biodiesel and renewable diesel producers have demonstrated they can meet 10% of the nation's demand for on-road diesel fuel," the groups told the president.

"The clean fuels industry has built more than 6.5 billion gallons of fuel production capacity here in the United States and is actively investing to expand. In 2024, we produced more than 5 billion gallons of affordable fuel including bioheat fuel. The industry generates $42.4 billion in annual economic activity, supports 107,400 jobs and $5.8 billion in annual wages paid across the country."

Clean Fuels Vice President of Federal Affairs Kurt Kovarik, said in a statement the future of biofuels companies is on the line. "Uncertainty and delays in regulatory policy -- including the RFS -- forced biodiesel and renewable diesel producers to idle nearly 1.8 billion gallons of existing capacity last year," he said.

"The slowdown threatens American jobs, consumers' pocketbooks and American farmers' livelihoods. The entire industry is eagerly awaiting the final RFS rule to bring this capacity up to speed. And none of the fuel will need to be delivered through the Strait of Hormuz."

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

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