Clean Fuels Conference continued from page 17 .
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In December 2024 , Clean Fuels filed a lawsuit to compel EPA to establish a timeline for setting the 2026 RFS volumes , which by statute were due in November 2024 .
Kurt Kovarik , Clean Fuels Vice President of Federal Affairs , stated , “ We appreciate the leadership of Representatives Smith and Craig and the support of the Biofuels Caucus members . U . S . demand for biodiesel and renewable diesel topped 5 billion gallons in 2024 . To get the RFS back on track , EPA must set robust and timely advanced and biomass-based diesel volumes that accurately account for domestic production capacity . Domestic production of these clean fuels is essential to meeting America ’ s energy needs and ensuring farm security and prosperity .”
Here is the text of the Feb . 6 letter , slightly edited for space and clarity , to Administrator Zeldin :
Congratulations on your recent confirmation as Administrator of the U . S . Environmental Protection Agency ( EPA ). As you work with President Trump to set the agency ’ s goals and objectives , we write to emphasize the importance of the American biofuels industry .
Steady growth in U . S . biofuel production means more American fuel in the marketplace and lower prices at the pump for hardworking families who have spent years suffering under high inflation . Homegrown fuels serve as a bulwark against price manipulation by foreign , state-owned oil exporters . They also promise to play a central role in fulfilling our vision for strengthening the farm economy , supporting domestic processing , and revitalizing rural communities . Ethanol contributed over $ 54 billion to U . S . gross domestic product ( GDP ) in 2023 , accounting for 28 percent of U . S . farming GDP while sustaining over 394,000 jobs . Similarly , the U . S . biodiesel and renewable diesel industry , with plants and markets across the country , supports 75,200 U . S . jobs and pays $ 3.6 billion in annual wages . Bio-based diesel drives more than $ 23.2 billion in annual economic activity . This is why the EPA took steps to increase the use of biofuels during President Trump ’ s first term .
The Trump EPA took steps to remove unnecessary regulatory barriers to E15 , rejected efforts to cap credits under the Renewable Fuel Standard ( RFS ), and adopted an approach to account for any lost gallons from RFS small refinery exemptions ( SREs ). Moving forward , rural communities are counting on you to maintain this trajectory by providing stable , predictable growth in U . S . biofuel targets and preserving the future integrity of the RFS .
As you know , the RFS was signed into law in 2005 and modified in 2007 to increase the supply of domestic renewable energy . Today , 98 percent of gasoline sold in the U . S . contains at least 10 percent ethanol ( E10 ), and the U . S . biodiesel and renewable diesel industry produces more than 4.5 billion gallons of fuel annually , accounting for about 9 percent of the nation ’ s total distillate supply . Higher-level ethanol blends like E15 reduce the price at the pump by 10-30 cents per gallon on average compared to E10 , with some locations offering savings of up to $ 1 per gallon . Biodiesel drives down the price of traditional diesel by about 4 percent , as well .
Under the last administration , the EPA set Renewable Volume Obligations ( RVOs ) under the RFS in a rulemaking commonly referred to as the “ Set ”. This first Set rule missed the mark for advanced biofuels volumes by setting blending targets over two billion gallons below production , creating oversupply in the market and stranding investment in production , processing , and agricultural feedstocks . Producers are already reeling from the impacts , with rural manufacturing plants idling production , laying off workers , and delaying feedstock purchases from American farmers .
The second rulemaking , setting volumes starting in 2026 , is already behind schedule . The EPA is required by law to issue these rules no later than 14 months before the first year for which these volumes will apply , but the current schedule calls for a final rulemaking in December of 2025 – 13 months past the statutory deadline . This delay , coupled with the flawed 2023 Set rule , has created uncertainty in the marketplace and slowed investment , negatively impacting gas prices , rural economies , and commodity prices .
Under your leadership , we request the EPA put the RFS back on track by providing a path for growth for all biofuels and rejecting proposals to undermine the statute and destabilize the market . To this end and above all else , EPA must provide stability to the market by establishing robust RVOs in the Set 2 rulemaking as described below ; rejecting abuse of SRE authority and ensuring any legitimate SREs are accounted for in the RVOs ; and rejecting proposals to retroactively lower volumes , erode demand , or set limits on blending . A robust RVO in the Set 2 rulemaking must set implied conventional biofuel RVOs of at least , if not more than , 15 billion gallons ; set advanced RVOs at volumes which account for the rapid growth of renewable diesel ( with an equivalent increase in total volumes ); implement forward-looking RVOs for cellulosic biofuels to spur continued innovation and investment ; and
30 MARCH 2025 | FUEL OIL NEWS | www . fueloilnews . com