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Clean Fuels applauds CARB’s decision to sunset outdated biodiesel restrictions

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By Clean Fuels Alliance America

January 06, 2026

Policy Markets 

Clean Fuels Alliance America welcomes a ruling by the California Air Resources Board to sunset the oxides of nitrogen (NOx) mitigation requirement for biodiesel blends up to B20 (20% biodiesel) in the Alternative Diesel Fuel regulation.

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The Canadian government in September 2025 announced new biofuel production incentives would take effect on Jan. 1, 2026. Fred Ghatala, president of Advanced Biofuels Canada Association, is welcoming the new incentives.

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The Maryland Biofuels Task Force on Dec. 15 released its comprehensive report assessing the challenges, costs, feasibility, and statewide benefits of expanding the use of higher biofuel blends across Maryland.

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The U.S. Department of the Treasury and Internal Revenue Service on Dec. 17 delivered a proposed rule to set 45Z clean fuel production credit guidance to the White House Office of Management and Budget.

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The U.S. EPA on Dec. 18 released data showing 1.78 billion RINs were generated under the RFS in November, down from 2.05 billion generated during the same month of 2024. Total RIN generation for the first 11 months of 2025 reached 21.11 billion.

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The U.S. EPA on Dec. 18 released new data showing eight new small refinery exemption (SRE) petitions have been filed under the Renewable Fuel Standard in the past month. A total of 25 SRE petitions are now pending.

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As global and domestic policies take shape, a clearer route to maritime decarbonization is emerging, and biodiesel and renewable diesel are well-suited to help propel the transition.

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The U.S. EPA currently expects to issue a final rule setting 2026 and 2027 Renewable Fuel Standard RVOs during the first quarter of 2026, according to a notice filed with the U.S Court of Appeals for the D.C. Circuit on Dec. 15.

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Sen. Marsha Blackburn, R-Tenn., on Dec. 2 introduced the Consumer Relief and Opportunities for Producers Act, which aims to temporarily reinstate the $1 per gallon biodiesel blenders tax credit for six months, through May 31, 2026.

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In 2025, SAF output is expected to reach 1.9 million metric tons (Mt) (2.4 billion liters), double the 1 Mt produced in 2024, according to the IATA. However, in 2026, SAF production growth is projected to slow down and reach 2.4 Mt.

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Darling Ingredients Inc. has announced an agreement to sell approximately $60 million of production tax credits to a corporate buyer. These credits were generated under the IRA by the company’s Diamond Green Diesel joint venture.

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Canada’s new Biofuels Production Incentive aims to reshape cross-border competition, offering short-term relief for domestic producers while raising new questions about market balance, trade tensions and the future of canola.

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A group of five oil state senators on Dec. 8 sent a letter to U.S. EPA Administrator Lee Zeldin asking the agency to scrap plans to reallocate RFS renewable volume obligations (RVOs) waived via the small refinery exemption (SRE) program.

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A new economic analysis finds that EPA’s proposal to assign 50% of the RIN credits to imported biofuels and biofuels made from imported feedstocks compared to domestic would strengthen domestic soybean markets.

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The U.S. Court of Appeals for the D.C. Circuit on Dec. 8 ordered the U.S. EPA to provide an update regarding the current status of its proposal to set 2026 RFS RVOs. The update must be filed with the court within seven days.

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Reps. Sharice Davids, D-Kan.; Mike Flood, R-Neb.; Troy Carter, D-La.; and Tracey Mann, R-Kan., on Dec. 9 introduced legislation that aims to reinstate the 45Z clean fuel production credit premium for SAF and extend the 45Z credit through 2033.

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The State of Soy

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By Susanne Retka Schill

December 09, 2025

The finalization of proposed U.S. policies is critical to relieve growers and producers navigating one of their most challenging years yet.

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The USDA on Dec. 8 announced it will make $12 billion available in one time bridge payments to U.S. farmers in response to temporary trade market disruptions and increased production costs. The payments are expected to be released by Feb. 28, 2026.

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Clean Fuels Alliance America along with the California Advanced Biofuels Alliance submitted formal comments to the California Air Resources Board following the agency’s recent public forum on biofuels and land use change.

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A study commissioned by Clean Fuels Alliance America and Farmers Fueling the Future finds that California’s ILUC assumptions for U.S. soy-based biodiesel and renewable diesel are outdated lacking modern agricultural practices and current science.

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The U.S. Department of Energy on Dec. 1 announced it has renamed the National Renewable Energy Laboratory as the National Laboratory of the Rockies. The change is effective immediately, according to the agency.

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The European Commission on Nov. 26 adopted a new Strategic Framework for a Competitive and Sustainable EU Bioeconomy, which focuses on sustainable solutions for food, health, energy, industry, the ecosystem and other services.

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The U.K. Trade Remedies Authority on Nov. 28 proposed new countervailing duties on U.S. renewable diesel. The agency is recommending duties be set at £257.80 to £303.56 per metric ton, which equates to approximately $1.09 to $1.29 per gallon.

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U.S. Secretary of Agriculture Brooke L. Rollins on Nov. 21 announced the USDA is making $7 million in payments available to advanced biofuel producers nationwide through the Advanced Biofuel Producer Payment Program.

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The International Air Transport Association said the EU’s release of the Sustainable Transport Investment Plan as a significant step in recognizing the urgent need to accelerate air transport’s decarbonization, but more action is still needed.

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The U.S. EPA on Nov. 20 released data showing more than 1.98 billion renewable identification numbers (RINs) were generated under the RFS in October, down from 2.17 billion generated during the same month of last year.

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The U.S. EPA on Nov. 20 released data showing two additional small refinery exemption (SRE) petitions have been filed under the RFS since the agency last updated its SRE data dashboard on Nov. 7. There are currently 17 SRE petitions pending.

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The U.S. Department of Energy on Nov. 20 announced an organizational realignment. The current Office of Energy Efficiency and Renewable Energy and Bioenergy Technologies Office are among the DOE departments that will be impacted.

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