“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.

“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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“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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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

The post Clean Fuels Welcomes §40B SAF GREET Model appeared first on Clean Fuels Alliance America.

“Each of our industries are committed to reducing greenhouse gas emissions, and we recognize that sustainable biofuels offer some of the most substantial immediate benefits to deliver carbon reductions. The EPA should utilize the RFS to improve energy security, bolster domestic industry and manufacturing, and maintain America’s leadership in developing and using sustainable, clean transportation technologies,” the associations write. “While our industries will continue to make investments in producing, distributing, and using low-carbon fuels, EPA can and should send a strong signal to the market through robust RVOs.”

“Transportation industries are looking for low-carbon solutions – particularly for heavy-duty engines – and clean fuels producers and feedstock suppliers are coordinating to deliver those solutions,” added Kurt Kovarik, Vice President of Federal Affairs with Clean Fuels. “We are united in asking EPA to use the Renewable Fuel Standard to drive growth in the market, achieve significant near-term greenhouse gas emission reductions, and support the investments we’ve made. EPA must act in a timely manner on the 2026 RFS volumes to keep the program on track.”

“The U.S. oilseed industry continues to meet food, feed and fuel demand and stands ready to meet higher RVOs for 2026 and beyond. March was the largest monthly crush ever reported, up 11 million bushels year over year. National Oilseed Processors Association members have made over $6 billion in investments to increase crush capacity by nearly 30 percent,” said Kailee Tkacz Buller, president and CEO of NOPA. “This growth trajectory will be put in doubt risking billions in investments without certainty, clarity, and aligning RVOs to actual industry capacity from the EPA.”

Joining Clean Fuels in sending the letter are American Short Line and Regional Railroad Association, American Soybean Association, American Trucking Associations, Association of American Railroads, National Energy & Fuels Institute, National Oilseed Processors Association, North American Renderers Association, and U.S. Canola Association.

Read the letter on cleanfuels.org.

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

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