The clean fuels industry has always been about more than emissions reductions. It’s about economic opportunity, rural investment, health benefits, and energy security. This spring, we’ve seen those priorities drive meaningful investment and policy momentum.
The U.S. Department of Agriculture (USDA) recently released $537 million in funding for 543 projects in 29 states through the Higher Blends Infrastructure Incentive Program (HBIIP). The HBIIP grants provide matching funds for companies investing in new pumps, fuel storage, distribution, and transportation infrastructure needed to deliver clean fuels to consumers. The program, which receives bipartisan congressional support, is effectively expanding market access for biodiesel across the country. These infrastructure upgrades will help producers supply better, cleaner fuels to states and regions where consumer demand is quickly increasing.
This commitment from USDA arrives at a moment of remarkable progress and unity in clean fuels policy. After more than 15 years of regulatory and political battles over Renewable Fuel Standard (RFS) volumes, fuel producers, farmers and refiners are speaking with one voice. Clean Fuels Alliance America, the American Petroleum Institute, American Soybean Association, National Oilseed Processors Association, and other stakeholders have come together to support timely, robust RFS volumes for 2026.
In March, we joined industry partners in a unified request to the Environmental Protection Agency (EPA): set the 2026 Biomass-Based Diesel (BBD) volume at 5.25 billion gallons. This target reflects both the industry’s current capacity and the growing demand for low-carbon fuels. Following lower-than-expected volumes set for 2023-2025, which contributed to delayed facility startups and job losses, there’s a clear opportunity for EPA to restore certainty and confidence. Setting a 5.25-billion-gallon volume for 2026 would signal stability and help the industry regain momentum.
Demand is already surging. In 2024, U.S. consumption of biodiesel, renewable diesel, and SAF reached 5.1 billion gallons. The Energy Information Administration (EIA) projects that will grow to 5.5 billion gallons in 2026. Rail and shipping companies are joining the clean fuels movement because biodiesel and renewable diesel are decarbonization tools readily available now. Six major U.S. railroads became Clean Fuels members in the past year alone. The new infrastructure supported by HBIIP grants will help meet this surging demand.
Billions in Clean Fuels Investment
The feedstock side is equally strong. Soybean processors have invested over $6 billion to expand or build 20 crush plants in 10 states, according to analysis by S&P Global on behalf of NOPA. Those investments will support an additional 1.4 billion gallons of biofuel production by 2030. In 2024, U.S. producers used over a billion pounds of domestic soybean oil each month – a 15 percent increase since 2022. That strong demand added an estimated $1.10 of value to every bushel of soybeans grown.
The economic case is just as compelling. The U.S. biomass-based diesel industry currently supports 107,400 jobs and adds $42.4 billion to the U.S. economy, according to GlobalData. With expected growth, that impact could rise to 145,700 jobs and over $60 billion in economic activity. From farms and rendering facilities to processing plants and fuel terminals, this is American energy in action.
Policy Alignment is Imperative
As 16 bipartisan U.S. Senators reminded EPA Administrator Lee Zeldin in April, we’ve seen what happens when RVOs are set too low. Producers pull back. Markets decline. Communities suffer. We cannot afford another year of policy misalignment. With stakeholders united and the infrastructure investments in place, EPA must seize this moment to align policy with opportunity.
Clean Fuels and industry stakeholders are urging EPA to finalize a 5.25-billion-gallon BBD volume for 2026 and to raise that target to 5.75 billion gallons in 2027. These numbers aren’t ambitious, they’re realistic, and they reflect where the industry is today and where it’s going.
Clean fuels are America’s opportunity to lead in climate, commerce, and community. With smart policy, strategic investment. and continued collaboration, we can deliver cleaner air, stronger farms, and a more secure energy future.
Donnell Rehagen serves as the CEO for Clean Fuels Alliance America, the U.S. trade association representing the entire biodiesel, renewable diesel, and sustainable aviation fuel supply chain, including producers, feedstock suppliers, and fuel distributors.