Four governors and U.S. senators from ten states have urged the Environmental Protection Agency (EPA) Administrator Lee Zeldin to support the American biofuel industry by establishing strong Renewable Fuels Standards (RFS). They have requested that the EPA set the Renewable Volume Obligation (RVO) for 2026 at a minimum of 15 billion gallons for conventional ethanol and 5.25 billion gallons for biomass-based diesel. The governors highlighted that these standards not only signify stability for the biofuels sector and rural economies but also serve as a critical foundation for multigenerational farm families.
The governors criticized the existing biofuel standards established during the Biden administration for not reflecting actual production capacity and failing to recognize investments in feedstock supplies. They emphasized the importance of biofuels in contributing to the economy, noting that U.S. ethanol and biodiesel production generated $80 million in economic activity and supported approximately 150,000 jobs in 2022.
Similarly, a group of 16 Senators echoed these concerns, arguing that the RVO levels should be increased to match increasing biofuel production capacity. They requested the EPA to consider multiyear standards rather than annual adjustments to provide better clarity for investment. The senators also highlighted that low RVO levels over the past years have led to the closure of biodiesel plants and negatively affected rural economies reliant on biofuels.
In response to these developments, industry leaders and coalitions have united in requesting robust standards for renewable fuel availability, as the demand for low-carbon fuels continues to grow across various sectors, including transportation and shipping.
An expert opinion in the transportation field indicates that establishing higher RFS levels is crucial not only for economic stability in rural areas but also for reducing carbon emissions in transportation. The integration of biofuels into the fuel mix is essential to meeting climate goals while also supporting local agriculture and job creation. Enhanced biofuel standards can help mitigate price volatility in liquid fuels, making transportation more sustainable and economical for consumers and the industry alike.
The Clean Fuels Alliance, which includes producers and distributors of biodiesel and renewable diesel, has been lobbying the Environmental Protection Agency (EPA) to establish Renewable Fuel Standards (RFS) for the year 2026. They filed a lawsuit in December 2024 to compel the EPA to issue a timeline for these standards, which are required to be set by November 2024. Paul Winters, a spokesperson for Clean Fuels, emphasized the rising consumer and retailer demand for carbon emissions reductions, underscoring that biodiesel and renewable diesel producers have been expanding their capabilities to meet this demand. The coalition of stakeholders, including various agricultural and petroleum organizations, has requested that the EPA set the biomass-based diesel volume for 2026 at 5.25 billion gallons to ensure market stability and the availability of low-carbon fuels in the transportation sector.
In the context of current transportation trends, this push for biodiesel and renewable diesel highlights an essential shift towards more sustainable fuel sources. The embrace of renewable fuels not only plays a critical role in reducing the carbon footprint of the transportation industry but also represents a necessary adaptation to regulatory and consumer pressures for cleaner energy. Establishing clear and ambitious standards can create an environment conducive to investments in infrastructure and technology that further enhance the sustainability of transport systems.