March 10, 2022
BY Clean Fuels Alliance America
Today, Clean Fuels Alliance America sent a letter to President Biden pledging readiness to maintain homegrown fuel supplies, mitigate consumers’ economic pain, and speed the nation’s clean energy future in support of the administration’s ban on imports of Russian petroleum. The letter urges the administration to get the Renewable Fuel Standard back on track as a key policy driver of American energy independence.
“America’s biodiesel, renewable diesel, and sustainable aviation fuel producers are working hard to provide better, cleaner fuels that provide consumers value and extend the diesel fuel supply,” the letter states.
“Reducing availability of biodiesel and renewable diesel right now would impose higher costs on American consumers – both in the price of fuel and other goods today and in terms of health tomorrow. We urge your administration to have confidence in the potential of America’s biomass-based diesel producers to replace Russian oil with homegrown, renewable, low-carbon fuel,” the letter concludes.
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The letter notes that in 2020, during the pandemic and associated shortfalls in fuel refining, the clean fuels industry contributed more than 3 billion gallons of biodiesel and renewable to maintain fuel supplies and keep essential goods moving. According to data from the World Agricultural Economic and Environmental Services, the additional supply of clean fuel that year kept diesel fuel prices $0.24 per gallon lower than they would have been otherwise.
Kurt Kovarik, Clean Fuels’ vice president of federal affairs, adds, “The Renewable Fuel Standard was established as a cornerstone of America’s energy independence. Since homegrown biodiesel and renewable diesel are direct replacements for foreign oil, a strong RFS is more important today than ever for the nation’s national security.”
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The letter requests that the administration quickly finalize the proposed RFS volumes for 2021 and 2022 and drop the proposal to “reset” previously established 2020 volumes.
The U.S. biodiesel and renewable diesel industry supports 65,000 U.S. jobs and more than $17 billion in economic activity each year. Every 100 million gallons of production supports 3,200 jobs and $780 million in economic opportunity. Biodiesel production supports approximately 13 percent of the value of each U.S. bushel of soybeans.
The U.S. Energy Information Administration maintained its forecast for 2025 and 2026 biodiesel, renewable diesel and sustainable aviation fuel (SAF) production in its latest Short-Term Energy Outlook, released July 8.
XCF Global Inc. on July 10 shared its strategic plan to invest close to $1 billion in developing a network of SAF production facilities, expanding its U.S. footprint, and advancing its international growth strategy.
U.S. fuel ethanol capacity fell slightly in April, while biodiesel and renewable diesel capacity held steady, according to data released by the U.S. EIA on June 30. Feedstock consumption was down when compared to the previous month.
XCF Global Inc. on July 8 provided a production update on its flagship New Rise Reno facility, underscoring that the plant has successfully produced SAF, renewable diesel, and renewable naphtha during its initial ramp-up.
The U.S. EPA on July 8 hosted virtual public hearing to gather input on the agency’s recently released proposed rule to set 2026 and 2027 RFS RVOs. Members of the biofuel industry were among those to offer testimony during the event.