The North American Renderers Association, alongside Clean Fuels Alliance America, the American Farm Bureau Federation, the American Soybean Association, the National Oilseed Processors Association and the US Canola Association, issued a letter urging the Environmental Protection Agency to set ambitious Renewable Fuel Standard volumes for 2026 and beyond. The coalition is calling for the EPA to establish the 2026 biomass-based diesel volume at no less than 5.25 billion gallons, with a corresponding increase in the advanced biofuel volume.

Over the past several years, significant investments in biofuel production capacity and feedstock supply have led to a doubling of domestic biodiesel and renewable diesel production. Currently, these fuels account for approximately 9% of US on-road diesel demand, providing consumers with cost-effective, domestically produced clean fuel options. Prices for B20 biodiesel blends have averaged $0.14 lower per gallon than conventional diesel since 2021, benefiting both consumers and the economy. The industry’s continued expansion supports US energy security, farm prosperity and rural economic development by creating markets for agricultural byproducts and repurposing waste materials such as rendered fats and used cooking oil. 

Despite these advances, the RFS volumes for 2023-2025 failed to reflect the industry's growth, undermining market confidence and causing some producers to idle capacity. The EPA recently acknowledged the need for a step change in biomass-based diesel and advanced biofuel volumes, citing an oversupply of credits due to volume requirements set below actual production trends.

Projections from the US Energy Information Administration indicate that US biodiesel and renewable diesel production will exceed 5.4 billion gallons in 2026, with total domestic production, including sustainable aviation fuel and other advanced biofuels, expected to surpass 6 billion gallons.

Setting the 2026 biomass-based diesel volume at 5.25 billion gallons and providing a stable growth trajectory for 2027 and beyond will ensure that American consumers continue to have access to affordable and sustainable transportation fuels. These volumes will reinforce farm security, stimulate job creation and drive economic opportunity, all while supporting the United States’ broader energy and environmental goals.

NARA and its industry partners hope to work with the EPA to finalize a robust and timely RFS rule that reflects the capabilities and contributions of the biofuel and rendering industries.

Source: North American Renderers Association