Biofuels Industry Asks EPA to Increase RFS Volume by 2026

The biofuels industry and feedstock producer groups have formally requested that the U.S. Environmental Protection Agency (EPA) establish a volume of 5.25 billion gallons of biodiesel and renewable diesel in the Renewable Fuel Standards (RFS) Program by 2026. This request seeks to ensure continued growth in the industry, guarantee market stability, and encourage the development of cleaner and more sustainable energy sources.

The RFS Context and the Importance of Biodiesel

The Renewable Fuel Standards (RFS) Program is a key policy in the United States that establishes requirements for the blending of biofuels into the fossil fuel supply. Its primary objective is to reduce dependence on petroleum, reduce greenhouse gas emissions, and encourage the development of renewable energy sources. Within this program, biodiesel and renewable diesel play an essential role due to their lower environmental impact and their ability to be integrated into existing fuel infrastructure without significant modifications.

Over the years, the biodiesel industry has experienced sustained growth thanks to incentives such as tax credits, subsidies, and mandatory blending quotas within the RFS. However, industry leaders argue that the EPA should set more ambitious volumes to prevent growth slowdowns and allow for continued investment in technology and production capacity.

The Request to Increase Volume to 5.25 Billion Gallons

The proposal submitted to the EPA suggests a volume of 5.25 billion gallons of biodiesel and renewable diesel by 2026, a significant increase from current levels. The primary reasons behind this request include:

Increasing Production Capacity: The industry has demonstrated its ability to increase biodiesel and renewable diesel production. In recent years, multiple facilities have expanded their operations and new plants have come online.

Sustainable Feedstock Supply: Producers of inputs such as vegetable oils, animal fats, and used cooking oils have increased their supply capacity. This allows the industry to have the necessary feedstock without negatively impacting other food or agricultural industries.

Positive Impact on Emissions Reduction: Biodiesel and renewable diesel have a significantly lower carbon footprint compared to traditional fossil fuels. Increased use of these biofuels could substantially contribute to the United States’ climate goals.

Job Creation and Economic Benefits: A larger volume of RFS would foster economic growth in rural communities and key supply chain sectors, including agriculture, manufacturing, and fuel distribution.

The biofuels industry and feedstock producer groups’ call for the EPA to establish a volume of 5.25 billion gallons of biodiesel and renewable diesel by 2026 underscores the importance of biofuels in the U.S. energy transition. Production capacity, feedstock availability, and environmental and economic benefits support this volume increase. However, regulatory and infrastructure challenges must be addressed to ensure this growth is sustainable and beneficial to all stakeholders. The EPA’s decision in the coming months will be key to defining the future of biodiesel in the country.

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