“Producing advanced biofuels in the United States promotes economic opportunities for communities across the country and increases market access for our nation’s farmers,” the Congressmembers write. “A strong RFS and availability of homegrown agricultural feedstocks are crucial to meeting the nation’s goal for new advanced biofuels for sustainable aviation (SAF), maritime, rail, home heating, and off-road heavy-duty markets.”

The House letter is available here.

“We look forward to working with you on 2026 standards that raise RFS volumes for biomass-based diesel and advanced biofuels to levels that are consistent with production and availability,” the Representatives conclude.

Eighteen Senators sent a similar letter on June 12.

The administration’s recently released Spring 2024 Unified Agenda of Regulatory and Deregulatory Actions indicates that the 2026 Renewable Fuel Standard volumes will not be finalized until December 2025, more than a year later than required by statute.

Kurt Kovarik, Vice President of Federal Affairs for Clean Fuels Alliance America, added, “We appreciate the bipartisan effort to urge EPA to meet statutory deadlines for the Renewable Fuel Standard. Increased production and market space for advanced biofuels like biodiesel, renewable diesel, and sustainable aviation fuel has always been the goal of the program. EPA needs to act fast to get the program back on track.

Contact: Paul Winters, pwinters@cleanfuels.org, 202-737-8803

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Kurt Kovarik, Clean Fuels Vice President of Federal Affairs, said, “We greatly appreciate Secretary Vilsack joining us today and acknowledging our industry’s need for both timely and accurate rules on climate smart ag practices. In speaking to our members, the Secretary delivered a message to representatives from the entire value chain of clean fuel production, from soy and canola farmers and feedstock producers to biodiesel, renewable diesel, and SAF producers and users.”

Clean Fuels hosted 100 industry representatives this week, Monday, June 24 – Wednesday, June 26, at its annual June Membership in Washington, D.C.

Kovarik continued, “We appreciate the fact that Secretary Vilsack understands the importance of having guidance for 45Z well in advance of January 1, 2025, so farmers, producers and fuel customers have the certainty to continue to produce and use low-carbon biomass-based diesel. While this request for information will have broader applications than just guidance on next year’s Clean Fuel Production Credit, it can inform the modeling and measurement of lifecycle carbon scores at the center of the credit. As Secretary Vilsack noted, farmers are already employing practices that continually improve the environmental profile of their operations and the carbon lifecycle for clean fuel production. We welcome his call for our industry to get that message to other federal stakeholders.”

Contact: Paul Winters, pwinters@cleanfuels.org, 202-737-8803.

The post Clean Fuels Welcomes USDA Request for Information on Climate Smart Ag appeared first on Clean Fuels Alliance America.

“As the agency set the RFS rule last year, Clean Fuels asked EPA to support achievable growth in biomass-based diesel of 500 million gallons a year. That request was very conservative, since the industry’s achieved growth of 4.6 billion gallons is significantly higher,” said Kurt Kovarik, Vice President of Federal Affairs for Clean Fuels Alliance America. “We warned EPA that the ‘no growth’ rule they set would undercut investments, economic opportunities for our industry and environmental benefits. Unfortunately, we’re seeing those consequences now.”

Kovarik continued, “Clean Fuels is asking EPA to use the industry’s demonstrated production in 2023 as a baseline and allow additional growth in 2024 and 2025. Clean Fuels believes that EPA should set the biomass-based diesel volume for 2024 at 5.1 billion gallons and for 2025 at 5.6 billion gallons, with proportional increases for the overall advanced and overall renewable fuel volumes.”

Clean Fuels’ petition highlights data available to EPA at the time the RFS rule was finalized that signaled aggressive growth in available volumes of biomass-based diesel:

• Data from EPA’s Moderated Transaction System (EMTS) shows that qualifying biomass-based diesel production increased by more than 30% — or 400 million gallons – in the first five months of 2023, compared to the same period in 2022.
• The U.S. Energy Information Administration’s (EIA) Short Term Energy Outlook (STEO) for June 2023 projected increases in U.S. production of biodiesel and renewable diesel of more than 800 million gallons in 2023 and 900 million gallons in 2024.
• Companies made significant investments in new production capacity prior to the set rule. Those companies have followed through to bring planned capacity online.
• U.S. companies made significant investments in new oilseed processing capacity prior to the set rule. Profit margins for processing and prices for all fats and oils across the board have dropped, due to the lack of demand drivers.
• USDA Foreign Ag Service data showed values for imported fats and oils doubled from 2021 to 2023, prior to the set rule. Yet EPA discounted availability of imported feedstocks that would support the industry’s growth.

Clean Fuels’ petition further highlights the negative impacts that will continue to materialize if EPA does not revise the 2024 and 2025 volumes. Due to the squeeze on available market space for advanced biofuels:

• 116 million gallons of annual biodiesel production capacity has idled and 12 million gallons has permanently closed.
• Approximately 1.4 billion gallons per year of planned renewable diesel capacity has been delayed. Nearly 350 million gallons of announced capacity has been reduced or canceled.
• Approximately 800 million gallons of planned SAF production has been delayed.
• Combined, biodiesel and renewable diesel production is running about 1.28 billion gallons below existing capacity. This difference equates to an opportunity cost of 40,768 jobs and almost $14 billion in economic activity.
• If the RVO was aligned with today’s production capacity, the United States could avoid an additional 11 million metric tons of CO2e relative to today’s actual production volumes.

The petition is available on CleanFuels.org.

Contact: Paul Winters, pwinters@cleanfuels.org, 202-737-8803

The post Clean Fuels Petitions EPA to Reconsider 2024 and 2025 RFS Volumes appeared first on Clean Fuels Alliance America.

“I can’t think of anyone who has been more influential in the technical aspects of biodiesel use and the development of biodiesel standards than Steve Howell,” said Teresa Alleman, D02 First Vice-Chair and Quality Specialist at HF Sinclair Midstream. “His tireless efforts, and unique ability to develop a consensus among parties, that are in many cases diametrically opposed, places him in a very special group of people. The Eagle Award is one of the highest honors from ASTM, and this recognition is well-deserved.”

Howell said activity on fuel quality standards for biodiesel blends over B20 (20% biodiesel)—and the research and technical data to support them—is at an all-time high. The recent increase stems from the need to lower the total metals and phosphorus levels in B100 (100% biodiesel) to maintain support for B20 in today’s diesel engines as well as the new aftertreatment systems slated for introduction in 2027.

“Clean Fuels, the national trade association representing biodiesel, renewable diesel and sustainable aviation fuel, heavily invested in the engine testing that provided the data we used to ballot a new low metals grade into ASTM D6751, the standard for biodiesel,” said Howell. “That testing showed B20 with lower metals had no adverse effects on NOx and aftertreatment systems over the full useful life of diesel engines, which is increasing to 435,000 miles.”

Efforts to maximize lifecycle carbon emission reductions using existing diesel equipment is also driving interest in higher biodiesel blends. The latest advancement, an update to the specification for fuel use in marine transportation, now covers biodiesel blends up to B100. ISO 8217:2024 was achieved through extensive collaboration between industry stakeholders and technical experts. Howell said as they continue to secure technical data for higher biodiesel blends, the task force will ballot standards covering up to B100 for all diesel applications.

Contact: Heather Buechter, 479-651-7301, hbuechter@cleanfuels.org

The post ASTM International Honors Steve Howell with Prestigious Eagle Award appeared first on Clean Fuels Alliance America.

“America’s environmental and energy security depend on the widespread production, availability, and use of biofuels. Biofuels play a particularly critical role in emissions reduction for heavy-duty transportation — including aviation, shipping, rail, and trucking — while opening up economic opportunities for American farmers,” the Senators wrote. “A strong RFS and broad availability of homegrown agricultural feedstocks bolster the domestic fuel supply and are critical for ensuring we keep up the progress we have made in decarbonizing our roads, seas, railways, and skies.”

“Iowa businesses are bearing the consequences of the Biden EPA’s 2023 rule that set extraordinarily low RFS volumes. To give you an example of the impacts, a plant in Ralston was forced to shut down as a result, which cost local jobs and hurt Iowa families,” Grassley said. “The EPA ought to embrace biofuels by correcting its past mistake and increasing 2026 levels in line with market data. Our producers are ready to supply communities with clean, bio-based fuels — if only the federal government would help facilitate their work rather than institute burdens.”

Kurt Kovarik, Vice President of Federal Affairs for Clean Fuels Alliance America, added, “More and more heavy-duty transportation industries are looking for reliable, cost-effective, low-carbon solutions that are available now. U.S. clean fuels producers and feedstock suppliers have made significant investments to build the capacity to deliver those solutions right now. Those investments expand markets for U.S. agriculture, support domestic energy security, and drive economic opportunities for rural communities. EPA must act in a timely manner on the 2026 RFS volumes and utilize the best available production data to support advanced biofuel market adoption.”

The letter is available here.

Contact: Paul Winters, 202-737-8803, pwinters@cleanfuels.org

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Tremendous growth in the biomass-based diesel industry should be celebrated by producers and farmers, as well as those who enjoy breathing cleaner air and lower greenhouse gas emissions. However, that growth coupled with disappointing Renewable Fuel Standard volumes set by the U.S. Environmental Protection Agency have put stress on the industry. Despite the current storm created by these conditions, new markets rapidly coming online provide a sunnier outlook for the years ahead.

In 2023, biomass-based diesel (BBD) consumption reached just under 4.6 billion gallons. Out of total diesel fuel consumed in the United States in 2023, BBD accounted for around 8%, a significant growth from recent years (approx. 5.5% in 2022). The U.S. Energy Information Agency’s most recent data, which is current through February, shows biodiesel production capacity has remained relatively steady at 2.1 billion gallons per year (BGY), while renewable diesel capacity has expanded up to 3.9 BGY (from 2.2 BGY as recent as October 2022). The main driver for this growth continues to be states with a Low Carbon Fuel Standard. California’s market remains strong, with consumption making up approximately 60% of its entire diesel pool.

Looking forward, renewable diesel capacity expansions and greenfield projects are continuing well into 2024 and parts of 2025. Currently, around 1.65 BGY of renewable diesel production capacity is expected by the end of 2025 in the U.S., with an additional 300 million gallons per year (MMgy) sanctioned in Canada. Sustainable aviation fuel (SAF) projects also continue apace, with an approximate 600 MMgy of production capacity expected by the end of 2025, with the majority of near-term growth coming from the familiar hydroprocessed esters and fatty acids (HEFA) production pathway.

This unprecedented growth eclipsed what the EPA forecasted, greatly exceeding the set rule for 2023. When the set rule was released in June 2023, it was readily apparent that BBD would easily outpace the D4 volume.

LCFS credit prices across the West Coast are also down from recent highs. Recently, there has been huge growth in credit generation, led by BBD, renewable natural gas and electrical vehicle adoption. Looking at the California LCFS, there is currently over 23 million metric tons of LCFS credits in the California credit bank. This is significantly pulling LCFS credit prices down. This is not only occurring in California but in all LCFS states, just not to the same degree.

Although these lower credit prices are concerning for producers, there is reason for hope with growing demand. New markets have been developing in recent years, due to many corporate initiatives to reduce greenhouse gas emissions and lower their collective carbon footprint. Both the rail and maritime industries are primed and ready to begin their transition to lower-carbon fuel sources. Both biodiesel and renewable diesel fit perfectly into their corporate structures, as they can be used as drop-in fuels.

An estimated 80% of the world’s goods are transported by sea, making low-carbon fuel critical for corporations that have made aggressive carbon reduction commitments. Biodiesel sales in marine markets are growing rapidly throughout the world, with B24 blends being sold in high quantities in Singapore and high quantities of B30 blends being sold in northwest Europe.

These companies would like to increase their uptake in biodiesel and renewable diesel blends in the U.S., a 7-billion-gallon market, but there are some hurdles—namely, the inability for ocean-going vessels to get the benefits of renewable identification numbers (RINs). Reps. Mariannette Miller-Meeks, R-Iowa, and John Garamendi, D-California, have introduced legislation aiming to increase the use of renewable biofuels used by sea vessels. By designating renewable fuel used in ocean-going vessels as an “additional renewable fuel” under the RFS, the Renewable Fuel for Ocean-Going Vessels Act would enable companies to preserve RINs in the program. U.S. Sens. Pete Ricketts, R-Nebraska, and Sherrod Brown, D-Ohio, introduced a similar version of the bill in the Senate, and thus far, the bill has shown signs of bipartisan support.

Railroads are another difficult-to-decarbonize sector with dreams of a cleaner future. The rail market is 4 billion gallons in the U.S., and we project that more than 20% will be BBD before the end of the decade. Multiple Class I railroad companies have been setting lofty goals for biodiesel use in their engines as early as 2030. Union Pacific, BNSF and Canadian National, along with other Class I railroads, are already making strides, successfully testing up to 100% BBD.

While there are near-term headwinds for our industry as discussed above, long-term tailwinds are right around the corner. Demand for BBD fuel is going to continue to grow as existing markets expand, and the benefits of these fuels continue to reach new markets.

The post New Markets Provide Sunnier Outlook For Clean Fuels appeared first on Clean Fuels Alliance America.

By adopting the updated spec, ISO aims to facilitate the integration of low-carbon liquid fuels including biodiesel into the marine fuel supply chain, contributing to greater greenhouse gas emissions reductions and supporting efforts to combat climate change.

ISO 8217:2024 ensures that biodiesel blends up to 100% meet rigorous performance standards, maintaining engine efficiency and reliability. The specification addresses critical parameters such as viscosity, flash point, and sulfur content, guaranteeing that biodiesel blends perform on par with conventional marine fuels.

“With the adoption of this updated specification, we are paving the way for higher blends of biodiesel use in marine transportation,” said Scott Fenwick, Technical Director at Clean Fuels Alliance America. “Biodiesel offers a viable solution for reducing emissions now while promoting sustainability on a global scale.”

The approval of ISO 8217:2024 is the result of extensive collaboration between industry stakeholders and technical experts to ensure that the spec meets the practical needs of the maritime sector while supporting a changing regulatory environment.

Contact: Heather Buechter, 479-651-7301, hbuechter@cleanfuels.org

The post ISO Publishes Updated Fuel Specification for Marine Applications Including B100 Approval appeared first on Clean Fuels Alliance America.

“With the Sec. 45Z credit set to take effect January 1, 2025, our member companies and organizations may face significant headwinds and business risk if this guidance is not published promptly,” the groups write. “Any extended delays in publication of guidance for the Sec. 45Z credit may disrupt project timelines, impede capital flows, and threaten existing production and demand for low carbon renewable fuels.”

Kurt Kovarik, Vice President of Federal Affairs for Clean Fuels Alliance America, added, “U.S. biodiesel and renewable diesel producers are facing uncertainty as the transition from the biodiesel and renewable diesel blender credit to the producer credit. They are facing difficulties already as they try to negotiate feedstock and fuel offtake contracts for next year. The need for policy certainty is urgent.”

Joining Clean Fuels in signing the letter are Advanced Biofuels Business Council, Airlines for America, Alternative Fuels & Chemicals Coalition, American Biogas Council, American Short Line and Regional Railroads Association, American Soybean Association, Associated Equipment Distributors, Association of American Railroads, Association of Equipment Manufacturers, Cargo Airline Association, Coalition for Renewable Natural Gas, General Aviation Manufacturers Association, Growth Energy, Methanol Institute, National Air Transportation Association, National Business Aviation Association, National Corn Growers Association, National Oilseed Processors Association, North American Renderers Association, Renewable Fuel Association, SAF Coalition, U.S. Canola Association, Vertical Aviation International, and Waste Gas Capture Initiative.

Contact: Paul Winters, 202-737-8803, pwinters@cleanfuels.org.

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The Clean Fuels Governing Board appointed Courtney Lawrenson, Vice President – Oils and Energy at AGP, as Second Vice-Chair succeeding Gary Louis who recently retired from his role with Seaboard Energy. Lawrenson brings a wealth of expertise as Second Vice-Chair with over a decade of experience in the clean fuels industry, serving as a board member since 2022.

Clean Fuels praised Louis for his years of service to the industry during his tenure as President and CEO of Seaboard Energy and wishes him well in his retirement.

Peter Ostenfeld-Rosenthal, incoming President and CEO at Seaboard Energy, joins the board as a new member filling a void left by Louis’ retirement. Following an impressive career as an oil and gas executive, Ostenfeld-Rosenthal most recently served as Vice President of Operations at Seaboard, where he led a renewable diesel refinery and two biodiesel plants, among other organizational assets. His dedication to building a framework that supports operational excellence will aid in the success of Clean Fuels as the association continues toward its vision of reaching six billion gallons by 2030.

Additionally, Kerry Fogarty, Quality Control Manager at Incobrasa Industries, Ltd. joined the board filling a vacancy left by Danielle Brannen’s resignation. With over 25 years of experience in the soybean crushing industry, Fogarty’s extensive industry knowledge and commitment to biodiesel quality will undoubtedly contribute to the organization’s strategic direction and efforts to promote the use of clean fuels.

“We are thrilled to have Courtney step into the role of Second Vice-Chair and welcome Peter and Kerry to our esteemed Governing Board,” said Donnell Rehagen, Clean Fuels CEO. “Their leadership and dedication will be invaluable as we continue to advance the interests of biodiesel, renewable diesel and sustainable aviation fuel.”

In the past eight months, Clean Fuels has also welcomed several new members who share a commitment to sustainable industry growth. These include:

• Alliance Technical Group: With more than 1,400 specialists located in 40-plus offices nationwide, Alliance provides premier technical solutions to support the full spectrum of our customers’ environmental needs.
• North Carolina Soybean Producers Association: The Qualified State Soybean Board to administer soybean checkoff-funded programs in North Carolina.
• Nuseed: A global leader in the development and commercialization of sustainable oilseed crops for renewable fuels.
• PepsiCo: A multinational food and beverage corporation committed to reducing its carbon footprint through sustainable fuel initiatives.
• RenStar, LLC: An innovative company specializing in renewable energy solutions, including biodiesel and renewable diesel.
• RICHARD: The industry leader in the engineering, design, and construction of the largest Renewable Diesel projects in the U.S. to date.
• Westmor Industries: A renowned manufacturer of equipment for the storage, transportation, and distribution of renewable fuels.
• WayTrade: A forward-thinking logistics company dedicated to maximizing the distribution of renewable fuels.

These new members join Clean Fuels at a pivotal time for the industry, as companies continue to search for cleaner alternatives to traditional fossil fuels to decarbonize heavy-duty transportation sectors.

“We are witnessing unprecedented growth driven by increasing awareness of the environmental and economic benefits of our fuels,” remarked Rehagen. “Our Governing Board and our members play a vital role in advocating for policies that support this growth and drive innovation in clean fuel technologies.”

Contact: Heather Buechter, 479-651-7301, hbuechter@cleanfuels.org

The post Clean Fuels Alliance America Announces Membership Growth and Governing Board Changes appeared first on Clean Fuels Alliance America.

Clean Fuels urges USDA and Treasury to further update the GREET model to include additional climate smart agriculture practices specific to oilseed crops and quickly finalize rules for the 2025-2027 tax incentives (§45Z Clean Fuel Production Credit), which will support U.S. biodiesel, renewable diesel, and SAF producers.

“Clean Fuels and its members appreciate the significant work of USDA and other federal agencies to account for the role that U.S. farmers will play in decarbonizing the nation’s aviation fuel,” said Kurt Kovarik, Vice President of Federal Affairs for Clean Fuels. “U.S. farmers and SAF producers will continue to work with the agencies to rapidly expand SAF production over the next few years.”

Clean Fuels continues to assess the changes to the GREET model unveiled today, including updated indirect emission penalties for U.S. oilseed crops like soy and canola. Clean Fuels believes there is more work to be done to enable credit for climate smart agriculture practices that U.S. farmers are deploying.

“Biodiesel, renewable diesel, and SAF producers are already negotiating feedstock and fuel offtake contracts for 2025, so we look forward to working with Treasury and USDA to quickly turn attention to guidance for the Clean Fuel Production Credit that begins on January 1 next year.” Kovarik added. “We believe there are additional climate smart agriculture practices and industry data that can be incorporated in the GREET model to support the continued sustainable growth of the entire clean fuel industry.”

Contact: Paul Winters, 202-737-8803, pwinters@cleanfuels.org

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