ABFA report shows EPA’s proposed 50% cut to RVOs from foreign feedstocks could stifle biomass-based diesel

In Washington, a new study published by the Advanced Biofuels Association (ABFA) finds that the Environmental Protection Agency’s (EPA) proposal to cut the Renewable Identification Number (RIN) by 50% for fuels made from foreign feedstocks, as part of its 2026 and 2027 Renewable Volume Obligations (RVOs), could stall the growth of the biomass-based diesel (BBD) industry and lead to higher costs for consumers.

The report, prepared by GlobalData Agri, confirms that there is sufficient domestic feedstock to meet the EPA’s projected production volumes of 4.3 billion gallons in 2026 and 4.6 billion gallons in 2027. But the market opportunity is far greater. According to estimates from Lipow Oil Associates, U.S. BBD demand is expected to reach 7 billion gallons by 2027 and grow to 9 billion gallons by 2030. Meeting that demand, however, will require continued access to global feedstock markets. EPA’s proposal to cut the RIN value in half for fuels made with imported feedstocks would limit overall BBD market growth and drive-up consumer prices – despite global supplies being more than sufficient to support expansion of American biofuel innovation.