LUBBOCK, TX – Rising diesel prices are strengthening the policy debate over biomass-based diesel as producers and consumers face higher transportation and operating costs.
Clean Fuels Alliance America Vice President of Federal Affairs Kurt Kovarik told the Agribusiness Report that biodiesel and renewable diesel currently supply about 10% of U.S. distillate demand. He argues that removing that volume would tighten supply rather than lower prices.
Kovarik said the fuels are largely produced from U.S. agricultural feedstocks and consumed domestically. His group is urging policymakers to maintain Renewable Fuel Standard volumes as part of a broader domestic energy strategy.
The argument comes as diesel costs remain elevated and refiners, biofuel producers and farm groups debate how renewable fuel obligations affect pump prices. Clean Fuels says stronger biofuel production adds supply while supporting demand for soybean oil and other feedstocks.
EPA’s treatment of small refinery exemptions and renewable volume obligations will remain central to that debate as the agency considers how to restore waived 2025 volumes.
Farm-Level Takeaway: Biomass-based diesel adds domestic distillate supply while creating demand for agricultural feedstocks used in renewable fuel production.