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CoBank: Policy uncertainty negatively impacts biobased diesel producers

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By Erin Voegele

3 hours ago

Advanced Biofuels Markets Business Policy 

CoBank latest quarterly research report highlights current challenges facing the biobased diesel industry. The report cites policy uncertainty and trade disruptions due to tariff disputes as factors impacting biofuel producers.

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The USDA on April 14 announced the cancellation of its Partnerships for Climate-Smart Commodities program. Select projects that meet certain requirements may continue under a new Advancing Markets for Producers initiative.

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The governors of Iowa, Nebraska, South Dakota and Missouri on April 10 sent a letter to U.S. EPA Administrator Lee Zeldin urging the agency to set higher Renewable Fuel Standard renewable volume obligations (RVOs).

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President Donald Trump on April 8 issued an executive order that aims to protect oil, natural gas, coal, hydropower, geothermal, biofuel, critical mineral, and nuclear energy resources from state overreach.

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Growth Energy and Clean Fuels Alliance America on April 14 filed a reply brief in a case challenging the U.S. EPA for its failure to reallocate gallons lost due to SREs granted after RVOs have been issued under the Renewable Fuel Standard.

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Sen. Roger Marshall, R-Kan., and Rep. Marcy Kaptur, D-Ohio, on April 10 reintroduced legislation to extend the 45Z clean fuel production credit and limit eligibility for the credit to renewable fuels made from domestically sourced feedstocks.

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Representatives of the U.S. biofuels industry on April 10 submitted comments to the U.S. Department of Treasury and IRFS providing recommendations on how to best implement upcoming 45Z clean fuel production credit regulations.

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Lawmakers in Wisconsin on April 3 announced their intent to introduce legislation that would create a $1.50 per gallon production tax credit for SAF. The bill is currently circulating for co-sponsorship support and will be formally introduced soon.

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A group of 16 senators, led by Sens. Chuck Grassley, R-Iowa, and Amy Klobuchar, D-Minn., on April 8 sent a letter to U.S. EPA Administrator Lee Zeldin urging the agency to increase RVO and account for SREs in the agency’s upcoming RFS rulemaking.

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A group of small refineries on April 4 sent a letter to President Donald Trump urging him “to sent the multi-national oil and biofuels companies back to the drawing board to come up with a biofuels policy that does no harm.”

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The U.S. Department of Commerce has disbanded an advisory committee that provided the agency with private sector advice aimed at boosting the competitiveness of U.S. renewable energy and energy efficiency exports, including ethanol and wood pellets.

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The U.S. EPA on March 24 asked the U.S. District Court for the District of Columbia to dismiss a lawsuit filed by biofuel groups last year regarding the agency’s failure to meet the statutory deadline to promulgate 2026 RFS RVOs.

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The USDA on March 25 announced it will release previously obligated funding under the Rural Energy for America Program To receive the funds, applicants will be required to remove “harmful DEIA" and “far-left climate features” from project proposals.

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The 2025 International Biomass Conference & Expo, held March 18-20 in Atlanta Georgia, featured of insightful discussions, cutting-edge technology showcases, and unparalleled networking opportunities.

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Nearly 1.52 billion RINs were generated under the RFS in February, down more than 25% when compared to the 2.04 billion that were generated during the same month of last year, according to data released by the U.S. EPA on March 20.

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President Donald Trump, Ag Secretary Brooke Rollins and EPA Administrator Lee Zeldin on March 18 celebrated National Agriculture Day by honoring America’s farmers, ranchers and producers who provide the world with food, fuel and clothing.

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Clean Fuels Alliance America on March 18 submitted comments supporting USDA on its Technical Guidelines for Climate-Smart Agriculture Crops Used as Biofuel Feedstocks Interim Rule and incorporation of USDA FD-CIC.

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Clean Fuels Alliance America is urging the U.S. EPA to establish robust, timely RFS volumes for 2026 and beyond and suggesting the agency set the 2026 RFS renewable volume obligation (RVO) for biomass-based diesel at 5.25 billion gallons.

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Ethanol Producer Magazine announced this week the preliminary agenda for the 2025 International Fuel Ethanol Workshop & Expo (FEW) taking place June 9-11, 2025 at the CHI Health Center in Omaha, Nebraska.

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The U.S. EPA on March 12 announced it has kicked off a formal reconsideration of 2009 Endangerment Finding, which forms the legal basis for GHG regulations, and is considering the elimination of the agency’s Greenhouse Gas Reporting Program.

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Foot on the Gas

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By Anna Simet

March 11, 2025

Despite the challenges it currently faces, the bio-based diesel industry is building on its successes and is ready to battle.

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The U.S. EPA on March 7 announced it will extend the compliance year 2024 Renewable Fuel Standard reporting deadline and signaled its intent to revise the 2024 RFS renewable volume obligation (RVO) for cellulosic biofuel.

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Whether 45Z can be the motivating factor to help incentivize that growth for the SAF industry still remains to be seen and is clouded by uncertainty—just like its rollout.

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A group of 70-plus stakeholders in the e-SAF industry are encouraging EU officials to implement five policy changes to encourage e-SAF development. The suggested changes aim to overcome investor barriers and accelerate progress.

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Natural Resources Canada’s Energy Innovation Program has announced it is now accepting applications for funding to support clean fuels production and clean fuels transportation and storage projects.

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The Minnesota Senate Taxes Committee on March 3 voted to approved legislation that aims to extend and expand the state’s existing tax credit for sustainable aviation fuel (SAF), which was established in 2023.

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The U.K. government on March 3 opened a public consultation on a SAF revenue certainty scheme, which aims to reduce financial risks for emerging SAF producers. The scheme complements the U.K.’s SAF mandate, which came into force Jan. 1, 2025.

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US objects to SAF recommendation at ICAO meeting

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By U.S. Department of State

March 05, 2025

The U.S. strongly objects to a recommendation on “sustainable” aviation fuels focused on multi-cropping made during the 13th triennial meeting of the ICAO Committee on Aviation Environmental Protection.

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