Clean Fuels Alliance America said Monday that early market data shows the Environmental Protection Agency’s finalized Renewable Fuel Standard volumes for 2026 and 2027 are already driving higher biodiesel and renewable diesel production, stronger feedstock demand and new rural infrastructure investment.

The trade group marked June 15, the EPA-established effective date for the rule, by sending a letter to President Donald Trump thanking the administration for what it called historic renewable fuel volumes and outlining evidence of growth across the biomass-based diesel sector.

Clean Fuels said the policy is providing certainty for producers and encouraging new investment across the supply chain, from oilseed processing and grain handling to fuel distribution.

“Farmers and biomass-based diesel producers are essential to U.S. energy and national security, and they are putting major investments behind it,” the group wrote in its letter.

The organization said U.S. soybean processors are expected to crush 57% of the domestic soybean crop this year and next, up from 52% in 2024, to help meet rising demand for biomass-based diesel. That shift, the group said, could reduce reliance on export markets such as China while strengthening domestic processing margins.

Clean Fuels pointed to several indicators of stronger feedstock demand. In April, U.S. oilseed processors crushed 218 million bushels of soybeans, up 8% from a year earlier, according to USDA data cited in the letter. Soy oil production rose 5% year over year to 2.53 billion pounds.

Canola processing also increased sharply, with more than 200,000 metric tons crushed in April, up 33% from the same month in 2025.

For fuel producers, Clean Fuels said biodiesel and renewable diesel plants reached more than 70% capacity utilization in April, the highest since 2024. That compares with an average utilization rate of 56% in 2025, when policy uncertainty weighed on production.

The Energy Information Administration projects renewable diesel production will rise 24% in 2026 from 2025 levels, while biodiesel production is expected to climb 41%.

Feedstock use has also increased. In March, biomass-based diesel production used a record 1.28 billion pounds of soy oil and 432 million pounds of distillers corn oil, a coproduct of ethanol production.

Clean Fuels said several processing and logistics projects are moving forward as a result of the rule’s market signal.

In Iowa, Western Iowa Energy has returned to full capacity after halting production in 2025 and cutting a quarter of its workforce. The company now produces 45 million gallons of biodiesel annually and employs 30 workers.

In Nebraska, Norfolk Crush is operating at full capacity, processing the equivalent of 2,000 acres of soybeans daily. The state now processes about 75% of its soybean crop domestically, according to Clean Fuels.

North Dakota processors are also expanding, with crushing capacity now reaching 100 million bushels annually, or about 45% of the state’s soybean production.

Rhoads Energy also began construction on a rail facility in Mount Joy, Pennsylvania, to improve biodiesel deliveries and lower transportation costs.

Kurt Kovarik, Clean Fuels’ vice president of federal affairs, said the EPA volumes are aligning with administration goals of supporting agriculture, expanding domestic fuel production and creating jobs.

“EPA’s historic RFS volumes for 2026 and 2027 are delivering on the Trump administration’s goals, farm security, rural economic growth, and domestic energy dominance,” Kovarik said. "The policy certainty supports the significant investments that our industry made to grow domestic markets for American farmers, increase domestic fuel production, and meet American consumers’ demand for affordable, secure energy. Better still, it is encouraging new investments and job creation to continue growth of biodiesel, renewable diesel, and SAF for the future.”

The group also criticized refining interests that have filed lawsuits challenging the RFS volumes, arguing the legal actions threaten biofuel market stability and farmer income. Clean Fuels said soybean prices fell 30 cents per bushel in the week after refiners announced legal action against the rule.

Sources:

Clean Fuels Alliance America, " Clean Fuels’ Letter to President Trump Highlights Economic Benefits for Farmers, Rural Communities Flowing from RFS Rule"

Clean Fuels Alliance America, "RFS Implementation Day Letter to Trump 2026"