by Cole Martin (Argus Media) The American Petroleum Institute and biofuel-supporting groups told Environmental Protection Agency (EPA) officials at a meeting today (April 1, 2025) that the agency should sharply raise advanced biofuel blend mandates for 2026.
The coalition told EPA that it supported a biomass-based diesel mandate next year of 5.25bn USG, up from 3.35bn USG this year, and a broader advanced biofuel mandate, including the cellulosic category, at 10bn Renewable Identification Number (RIN) credits, up from 7.33bn RINs this year, according to three different groups that attended the meeting. Both mandates would be record highs for the Renewable Fuel Standard (RFS) program.
Soybean oil futures and RIN credit prices have risen sharply over the past week on optimism that oil and biofuel interests were working to coordinate volume mandate requests for consideration by President Donald Trump's administration.
The coalition is also pushing the agency to set a total conventional volume requirement at 25bn RINs, which would keep an implied mandate for corn ethanol flat at 15bn USG. Ethanol groups had previously eyed a mandate even higher, but limits on the amount of ethanol that can be blended into gasoline make much more-stringent requirements a tough sell to oil refiners.
The coalition provided no specific request for the cellulosic biofuel subcategory, where most credit generation comes from biogas. Credits in that category are more expensive, but price concerns have been less potent recently given an EPA proposal to lower previously set cellulosic obligations, signaling that future volume requirements can be cut, too.
EPA is aiming to finalize new RFS volume mandates by the end of the year if not earlier, people familiar with the administration's thinking have said. EPA officials signaled at the meeting they were working urgently on the rulemaking.
"The agency is intent on getting the RFS program back on the statutory timeline for issuing renewable volume obligation rules," EPA said, declining to comment further on its plans for the rule.
The RFS program requires oil refiners and importers to blend biofuels into the conventional fuel supply or buy credits from those who do. Under the program's unique nesting structure, credits from blending lower-carbon biofuels can be used to meet obligations for other program categories. One gallon of corn ethanol generates 1 RIN, but more energy-dense fuels earn more RIN credits per gallon.
Some disagreements persist
While groups at the meeting were aligned around high-level mandates, how administration officials and courts treat small refinery requests for exemptions from RFS requirements could undercut those targets. Groups present were broadly aligned on asking EPA not to grant widespread exemptions, though there is still disagreement in the industry about how best to account for exempted volumes when deciding requirements for other refiners.
Groups present at the meeting today included the American Petroleum Institute and representatives of biofuel producers and crop feedstock suppliers. Some groups that previously engaged with the coalition's efforts to project unity to the Trump administration were not present. And some groups more historically skeptical of the RFS and more supportive of small refinery exemptions — including the American Fuel and Petrochemical Manufacturers — have not been closely involved.
Fuel marketer groups notably did not attend the meeting after a representative sparred with others in the coalition at an American Petroleum Institute meeting last month. Some retail groups, including the National Association of Convenience Stores and the National Association of Truck Stop Operators, instead sent a letter to EPA today arguing that the groups pushing steep volumes are discounting potential headwinds to the sector from new tax credit policy.
Some of the groups advocating for higher biofuel volumes have pointed to high production capacity and feedstock availability, but have preferred to ignore thornier issues like tax credits, lobbyists say.
"An overly aggressive increase in advanced biofuel blending mandates under the RFS will be punitive for American consumers" without extending a long-running $1/USG tax credit for biomass-based diesel blenders, the retailers' letter said. That incentive expired last year and was replaced by the Inflation Reduction Act's "45Z" credit, which offers subsidies to producers instead of blenders and throttles benefits based on carbon intensity. Generally lower credit values for biomass-based diesel — coupled with the US government's delays setting final regulations on qualifying for the credit — have spurred a sharp drop in biofuel production to start the year.
Without a blenders credit, the RFS volume mandates pushed by some groups could increase retail diesel prices by 30¢/USG, the fuel marketers estimate, a potential political headache for a president that ran on curbing consumer costs. Other biofuel groups say that extending the credit would be an uphill battle this year, with some lawmakers and lobbyists instead focused on legislatively tweaking the 45Z incentive's rules to benefit crop feedstocks instead of reverting wholesale to the prior tax policy. READ MORE
Related articles
- US EPA's upcoming proposal on biofuel blending mandates to cover two years, sources say (Reuters)
- Fuel Groups Jockey for RFS Position -- Fuel Interests Set to Meet at EPA on Future of Renewable Fuel Standard (DTN Progressive Farmer)
- US oil and biofuel coalition meets with EPA to seek biomass diesel boost (Reuters)
- Biofuels Could Face Market Disruption Without Blenders’ Credit: NACS, other organizations caution EPA that, without the credit, diesel prices could be impacted by high RFS obligations. (Convenience.org)
Excerpt from Reuters: The U.S. Environmental Protection Agency plans to release a proposal on biofuel blending mandates that covers two years worth of mandates, instead of a proposal that covers three years, two sources familiar with the matter told Reuters on Tuesday. READ MORE
Excerpt from DTN Progressive Farmer: According to statute, the EPA was required to finalize 2026 volumes by November 2024, but the Biden administration pushed it back by one year, leading to a lawsuit filed in federal court by Clean Fuels Alliance America and Growth Energy. Read more about that here: https://www.dtnpf.com/….
...
The groups provided a chart with a list of 22 biomass-based diesel plants that have closed, converted production to other products or gone idle leading up to and after the end of the $1 biodiesel tax credit.
"At least nine facilities in the U.S. have confirmed they will be shutting down or idling production this year until further notice," the letter said.
"Collectively these facilities represent nearly 750 million gallons per year of biodiesel/renewable diesel capacity (about 15% of the market)."
INDUSTRY WARNINGS
Paul Winters, director of public affairs and federal communications for Clean Fuels Alliance America, said the biomass-based diesel industry warned federal officials for months that the tax policy uncertainty would harm the industry.
"We tried to make clear to Treasury that producers and feedstock providers needed to know the rules at least three months before the start of the year," Winters told DTN.
"They negotiate feedstock purchases and fuel sales contracts a minimum of a quarter year in advance. So, it's no surprise that our industry started the year without those contracts in place. And many producers had to shut down or slow down."
With the January guidance on calculating the 45Z credit, he said some companies have enough information to move forward with contracts. Read more about that here: https://www.dtnpf.com/….
"There is existing guidance on transferring the credit to others, on the registration requirements and on the form to file to claim the credit," Winters said.
"Others do not have enough confidence in the guidance or clarity on certain aspects, like qualifying sales or when/how to file. So, individual companies are making case-by-case decisions on restarting production."
The groups told Zeldin in the letter that as a result of facility closures, total renewable diesel and biodiesel volumes are down by about 59% since the end of 2024 and total volumes are down by about 50%, year-over-year.
Domestic renewable diesel volumes are down by nearly 52% since the end of 2024 and 34%, year-over-year, the letter said. Domestic biodiesel volumes are down by about 58% since the end of 2024 and domestic biodiesel volumes are down by nearly 42% year-over-year.
"While this state of affairs may help certain domestic biofuel producers, it hurts retailers, trucking companies, and consumers," the letter said. READ MORE
Excerpt from Convenience.org: If the U.S. Environmental Protection Agency (EPA) sets aggressive renewable volume obligations under the Renewable Fuel Standard (RFS) without a Congressional extension of the “Section 40A” biodiesel blenders’ tax credit, diesel prices could be significantly impacted, said NACS; NATSO, representing truck stops and travel centers; and SIGMA: America’s Leading Fuel Marketers.
In a letter to EPA Administrator Lee Zeldin, the associations, who together represent more than 90% of fuel sold at retail, noted, “Our members have grave concerns that setting volumes for total advanced biofuel at levels that the market is unable to economically absorb will result in steep increases in [RIN] prices and, by extension, in the retail price of diesel. Unrealistic mandates, particularly when they are not paired with the relief that the [blenders’ tax credit] could help provide, would be destructive of the market and impose palpable inflationary pressures that will hit American consumers directly in their wallets every time they buy virtually any good in the nation.”
The letter noted that fuel retailers support policies that enhance energy independence and support abundant, stable energy sources and that biofuels represent a key component of ensuring a stable fuel supply. Extending the $1 per gallon biodiesel blenders’ tax credit would restore certainty in the biofuels market, which has entered a production crisis, threatening supplies.
The expiration of the blenders’ tax credit at the end of 2024, coupled with an incomplete and ineffective tax framework created under the new “Section 45Z” clean fuel producers’ tax credit, has decimated biofuels supply chains, the associations noted. Many biofuel production facilities, particularly biodiesel plants, have scaled back or are shutting down entirely.
EPA data shows that total renewable diesel and biodiesel volumes are down by 58.8% since the Biodiesel Tax Credit expired at the end of 2024. Total volumes have declined by 50.2% year over year.
More than 20 U.S. biofuel facilities — representing almost 15% of the biofuels market — will shutter or idle production in 2025, according to public data, reducing biodiesel and renewable diesel capacity by nearly 750 million gallons, per year. Iowa, the leader in biodiesel production, could shutter most of its 10 biodiesel production facilities this year, removing nearly 20% of U.S. biodiesel from the market.
“In absence of an extension of the [blenders’ credit], EPA should remain wary of these major disruptions as it develops the forthcoming renewable volume obligations,” the associations said, adding that they are eager to work with EPA to advance consumer-oriented fuel policies that support the Administration’s agenda and the American consumer. READ MORE
More than 50,000 articles in our online library!
Use the categories and tags listed below to access the nearly 50,000 articles indexed on this website.
Advanced Biofuels USA Policy Statements and Handouts!
- For Kids: Carbon Cycle Puzzle Page
- Why Ethanol? Why E85?
- Just A Minute 3-5 Minute Educational Videos
- 30/30 Online Presentations
- “Disappearing” Carbon Tax for Non-Renewable Fuels
- What’s the Difference between Biodiesel and Renewable (Green) Diesel? 2020 revision
- How to De-Fossilize Your Fleet: Suggestions for Fleet Managers Working on Sustainability Programs
- New Engine Technologies Could Produce Similar Mileage for All Ethanol Fuel Mixtures
- Action Plan for a Sustainable Advanced Biofuel Economy
- The Interaction of the Clean Air Act, California’s CAA Waiver, Corporate Average Fuel Economy Standards, Renewable Fuel Standards and California’s Low Carbon Fuel Standard
- Latest Data on Fuel Mileage and GHG Benefits of E30
- What Can I Do?
Donate
DonateARCHIVES
- April 2025
- March 2025
- February 2025
- January 2025
- December 2024
- November 2024
- October 2024
- September 2024
- August 2024
- July 2024
- June 2024
- May 2024
- April 2024
- March 2024
- February 2024
- January 2024
- December 2023
- November 2023
- October 2023
- September 2023
- August 2023
- July 2023
- June 2023
- May 2023
- April 2023
- March 2023
- February 2023
- January 2023
- December 2022
- November 2022
- October 2022
- September 2022
- August 2022
- July 2022
- June 2022
- May 2022
- April 2022
- March 2022
- February 2022
- January 2022
- December 2021
- November 2021
- October 2021
- September 2021
- August 2021
- July 2021
- June 2021
- May 2021
- April 2021
- March 2021
- February 2021
- January 2021
- December 2020
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- October 2019
- September 2019
- August 2019
- July 2019
- June 2019
- May 2019
- April 2019
- March 2019
- February 2019
- January 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- December 2015
- November 2015
- October 2015
- September 2015
- August 2015
- July 2015
- June 2015
- May 2015
- April 2015
- March 2015
- February 2015
- January 2015
- December 2014
- November 2014
- October 2014
- September 2014
- August 2014
- July 2014
- June 2014
- May 2014
- April 2014
- March 2014
- February 2014
- January 2014
- December 2013
- November 2013
- October 2013
- September 2013
- August 2013
- July 2013
- June 2013
- May 2013
- April 2013
- March 2013
- February 2013
- January 2013
- December 2012
- November 2012
- October 2012
- September 2012
- August 2012
- July 2012
- June 2012
- May 2012
- April 2012
- March 2012
- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- December 2010
- November 2010
- October 2010
- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
- April 2009
- March 2009
- February 2009
- January 2009
- December 2008
- November 2008
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
- May 2008
- April 2008
- March 2008
- February 2008
- January 2008
- December 2007
- November 2007
- October 2007
- September 2007
- August 2007
- June 2007
- February 2007
- January 2007
- October 2006
- April 2006
- January 2006
- April 2005
- December 2004
- November 2004
- December 1987
CATEGORIES
- About Us
- Advanced Biofuels Call to Action
- Aviation Fuel/Sustainable Aviation Fuel (SAF)
- BioChemicals/Renewable Chemicals
- BioRefineries/Renewable Fuel Production
- Business News/Analysis
- Cooking Fuel
- Education
- 30/30 Online Presentations
- Competitions, Contests
- Earth Day 2021
- Earth Day 2022
- Earth Day 2023
- Earth Day 2024
- Earth Day 2025
- Executive Training
- Featured Study Programs
- Instagram TikTok Short Videos
- Internships
- Just a Minute
- K-12 Activities
- Mechanics training
- Online Courses
- Podcasts
- Scholarships/Fellowships
- Teacher Resources
- Technical Training
- Technician Training
- University/College Programs
- Events
- Coming Events
- Completed Events
- More Coming Events
- Requests for Speakers, Presentations, Posters
- Requests for Speakers, Presentations, Posters Completed
- Webinars/Online
- Webinars/Online Completed; often available on-demand
- Federal Agency/Executive Branch
- Agency for International Development (USAID)
- Agriculture (USDA)
- Commerce Department
- Commodity Futures Trading Commission
- Congressional Budget Office
- Defense (DOD)
- Air Force
- Army
- DARPA (Defense Advance Research Projects Agency)
- Defense Logistics Agency
- Marines
- Navy
- Education Department
- Energy (DOE)
- Environmental Protection Agency
- Federal Energy Regulatory Commission (FERC)
- Federal Reserve System
- Federal Trade Commission
- Food and Drug Administration
- General Services Administration
- Government Accountability Office (GAO)
- Health and Human Services (HHS)
- Homeland Security
- Housing and Urban Development (HUD)
- Interior Department
- International Trade Commission
- Joint Office of Energy and Transportation
- Justice (DOJ)
- Labor Department
- National Academies of Sciences Engineering Medicine
- National Aeronautics and Space Administration
- National Oceanic and Atmospheric Administration
- National Research Council
- National Science Foundation
- National Transportation Safety Board (NTSB)
- Occupational Safety and Health Administration
- Overseas Private Investment Corporation
- Patent and Trademark Office
- Securities and Exchange Commission
- State Department
- Surface Transportation Board
- Transportation (DOT)
- Federal Aviation Administration
- National Highway Traffic Safety Administration (NHTSA)
- Pipeline and Hazardous Materials Safety Admin (PHMSA)
- Treasury Department
- U.S. Trade Representative (USTR)
- White House
- Federal Legislation
- Federal Litigation
- Federal Regulation
- Feedstocks
- Agriculture/Food Processing Residues nonfield crop
- Alcohol/Ethanol/Isobutanol
- Algae/Other Aquatic Organisms/Seaweed
- Atmosphere
- Carbon Dioxide (CO2)
- Field/Orchard/Plantation Crops/Residues
- Forestry/Wood/Residues/Waste
- hydrogen
- Manure
- Methane/Biogas
- methanol/bio-/renewable methanol
- Not Agriculture
- RFNBO (Renewable Fuels of Non-Biological Origin)
- Seawater
- Sugars
- water
- Funding/Financing/Investing
- grants
- Green Jobs
- Green Racing
- Health Concerns/Benefits
- Heating Oil/Fuel
- History of Advanced Biofuels
- Infrastructure
- Aggregation
- Biofuels Engine Design
- Biorefinery/Fuel Production Infrastructure
- Carbon Capture/Storage/Use
- certification
- Deliver Dispense
- Farming/Growing
- Precursors/Biointermediates
- Preprocessing
- Pretreatment
- Terminals Transport Pipelines
- International
- Abu Dhabi
- Afghanistan
- Africa
- Albania
- Algeria
- Angola
- Antarctica
- Arctic
- Argentina
- Armenia
- Aruba
- Asia
- Asia Pacific
- Australia
- Austria
- Azerbaijan
- Bahamas
- Bahrain
- Bangladesh
- Barbados
- Belarus
- Belgium
- Belize
- Benin
- Bermuda
- Bhutan
- Bolivia
- Bosnia and Herzegovina
- Botswana
- Brazil
- Brunei
- Bulgaria
- Burkina Faso
- Burundi
- Cambodia
- Cameroon
- Canada
- Caribbean
- Central African Republic
- Central America
- Chad
- Chile
- China
- Colombia
- Congo, Democratic Republic of
- Costa Rica
- Croatia
- Cuba
- Cyprus
- Czech Republic
- Denmark
- Dominican Republic
- Dubai
- Ecuador
- El Salvador
- Equatorial Guinea
- Eqypt
- Estonia
- Eswatini/Swaziland
- Ethiopia
- European Union (EU)
- Fiji
- Finland
- France
- French Guiana
- Gabon
- Georgia
- Germany
- Ghana
- Global South
- Greece
- Greenland
- Guatemala
- Guinea
- Guyana
- Haiti
- Honduras
- Hong Kong
- Hungary
- Iceland
- India
- Indonesia
- Iran
- Iraq
- Ireland
- Israel
- Italy
- Ivory Coast
- Jamaica
- Japan
- Jersey
- Jordan
- Kazakhstan
- Kenya
- Korea
- Kosovo
- Kuwait
- Laos
- Latin America
- Latvia
- Lebanon
- Liberia
- Lithuania
- Luxembourg
- Macedonia
- Madagascar
- Malawi
- Malaysia
- Maldives
- Mali
- Malta
- Marshall Islands
- Mauritania
- Mauritius
- Mexico
- Middle East
- Moldova
- Monaco
- Mongolia
- Morocco
- Mozambique
- Myanmar/Burma
- Namibia
- Nepal
- Netherlands
- New Guinea
- New Zealand
- Nicaragua
- Niger
- Nigeria
- North Africa
- North Korea
- Northern Ireland
- Norway
- Oman
- Pakistan
- Panama
- Papua New Guinea
- Paraguay
- Peru
- Philippines
- Poland
- Portugal
- Qatar
- Romania
- Russia
- Rwanda
- Saudi Arabia
- Scotland
- Senegal
- Serbia
- Sierra Leone
- Singapore
- Slovakia
- Slovenia
- Solomon Islands
- South Africa
- South America
- South Korea
- South Sudan
- Southeast Asia
- Spain
- Sri Lanka
- Sudan
- Suriname
- Sweden
- Switzerland
- Taiwan
- Tanzania
- Thailand
- Timor-Leste
- Togo
- Trinidad and Tobago
- Tunisia
- Turkey
- Uganda
- UK (United Kingdom)
- Ukraine
- United Arab Emirates UAE
- Uruguay
- Uzbekistan
- Vatican
- Venezuela
- Vietnam
- Wales
- Zambia
- Zanzibar
- Zimbabwe
- Marine/Boat Bio and Renewable Fuel/MGO/MDO/SMF
- Marketing/Market Forces and Sales
- Opinions
- Organizations
- Original Writing, Opinions Advanced Biofuels USA
- Policy
- Presentations
- Biofuels Digest Conferences
- DOE Conferences
- Bioeconomy 2017
- Bioenergy2015
- Biomass2008
- Biomass2009
- Biomass2010
- Biomass2011
- Biomass2012
- Biomass2013
- Biomass2014
- DOE Project Peer Review
- Other Conferences/Events
- R & D Focus
- Carbon Capture/Storage/Use
- Co-Products
- Feedstock
- Logistics
- Performance
- Process
- Vehicle/Engine/Motor/Aircraft/Boiler
- Yeast
- Railroad/Train/Locomotive Fuel
- Resources
- Books Web Sites etc
- Business
- Definition of Advanced Biofuels
- Find Stuff
- Government Resources
- Scientific Resources
- Technical Resources
- Tools/Decision-Making
- Rocket/Missile Fuel
- Sponsors
- States
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- Florida
- Georgia
- Hawai'i
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Midwest
- Minnesota
- Mississippi
- Missouri
- Montana
- Native American tribal nation lands
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Puerto Rico
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- Washington DC
- West Coast
- West Virginia
- Wisconsin
- Wyoming
- Sustainability
- Uncategorized
- What You Can Do
tags
© 2008-2023 Copyright Advanced BioFuels USA. All Rights reserved.
Comments are closed.