OPINION:
This past March, during the Great American Agriculture Celebration at the White House, President Donald Trump launched the historic 2026-2027 Renewable Fuel Standard volumes. He proudly proclaimed that the “highest volumes of renewable fuels in history” would “generate over $10 billion of rural economic benefit, create an estimated 100,000 new jobs, and massively increase our nation’s energy supply.”
The new rule realigned the RFS program with its original purposes: to build a stable, domestic market for U.S. crops, generate economic opportunity and investments in rural communities and expand renewable fuel production to meet the nation’s energy needs.
In the months since the Environmental Protection Agency finalized the rule, U.S. biodiesel, renewable diesel and renewable jet (SAF) producers have been delivering on all three goals. The industry is bringing new capacity into production, building new supply chains and making additional investments across rural America for future expansion.
U.S. biodiesel, renewable diesel and SAF companies aggressively ramped up production in response to the RFS rule. In June and July this year, producers generated the largest and third-largest domestic volumes in the RFS program’s history, exceeding 85% capacity utilization rates across the industry. And there is still room for growth driven by this year’s robust RFS volumes.
U.S. renewable diesel capacity expanded by 100 million gallons since the RFS rule’s finalization. In May, Hawaii Renewables commissioned a new plant on Oahu and in June, XCF Global commissioned its New Rise Renewables Reno plant in Nevada. Both facilities are actively ramping up production of renewable diesel and plan to increase SAF production in the future.
The commercial maturation of SAF production is encouraging new private investment. In September, Montana Renewables announced it would complete a 200-million-gallon-per-year SAF facility and add another 60 million gallons per year of renewable diesel in 2028. The company reduced the cost of financing the project nearly five-fold, through successful demonstration of the technology.
With expanding capacity, the U.S. biomass-based diesel industry is creating record demand for U.S. agricultural feedstocks. In June, biodiesel and renewable diesel producers used 1.55 billion pounds of domestic soybean oil — the highest one-month total in history. Back in 2005, the emerging biodiesel industry purchased nearly the exact same amount of soybean oil through the first full year of the RFS program. Biodiesel and renewable diesel today represent 10% of the value of all soybeans grown in the United States.
That value is driving new farmer-led investments across the soybean supply chain, from new processing facilities to transportation infrastructure. In September, CHS announced the start of construction for Wisconsin’s first large-scale soybean processing facility. It is a $700 million investment that will process 80 million bushels of soybeans — about two-thirds of the state’s soy production — and create 80 new jobs.
In July, ADM announced investments to expand domestic oilseed processing capacity by 25 million bushels in its existing facilities in Indiana, Missouri, Nebraska, and North Dakota. Combined, ADM’s four facilities employ 2,650 people and annually purchase $8 billion worth of agricultural products from area farmers. And in August, both Shell Rock Soy Processors and Platinum Crush announced they are on schedule to complete expansions to their crush capacity in Iowa.
In July, AGP began shipping unit trains of soybean oil from the recently completed David City, Nebraska, processing facility to a West Coast renewable diesel producer, creating a feedstock pipeline on rail. The first train consisted of 96 tank cars carrying more than 20 million lbs. of oil, which is enough to produce 2.5 million gallons of renewable diesel.
The added supply of renewable diesel and biodiesel will be critical to U.S. energy security in the coming months. Distillate fuels are the lifeblood of the U.S. economy, tied to multiple indicators of economic growth. They’re used in on-highway transportation, rail and marine shipping to deliver every single consumer item across the country. They’re also used in heating, farming and construction.
U.S. demand for distillate fuels has changed very little over time, declining perhaps 3% over the last year. Even as prices climbed roughly 50% since March this year, demand for diesel remained steady — demonstrating the strength of the economy. Moreover, as we enter harvest season and winter weather, demand for distillates to run farm equipment and heating systems will again increase.
Upholding the historic RFS volumes is crucial to meeting demand and maintaining economic activity. Without the added production capacity and supply of distillates, prices would be even higher and economic growth would slow.
The United States needs a growing supply of diesel fuel and the biomass-based diesel industry can provide a better, cleaner option right now. Combined, biodiesel and renewable diesel are growing to meet 10% or more of the nation’s distillate needs. And according to the U.S. Department of Energy, biodiesel is saving consumers at the pump. Most important, the industry is actively investing in capacity and supply chains to contribute more.
The United States needs a strong Renewable Fuel Standard now more than ever. Expanding domestic production and use of biodiesel, renewable diesel and SAF is vital to meet the demands of the U.S. economy in the next six months. Recognizing and supporting the industry’s current and future investments in capacity and supply chains spreads the benefits across the country, especially to rural communities. And meeting consumer demand for affordable, cleaner fuel extends the benefits beyond energy security.
• Donnell Rehagen is CEO of Clean Fuels Alliance America. As CEO, he works closely with Clean Fuels’ board of directors to ensure the industry has a clear, sharp vision of the future full of growth and opportunity for the members it serves.
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