Rural Economies Are Benefiting from the RFS

By Donnell Rehagen, CEO

Investments our industry made over the last several years to increase U.S. biomass-based diesel capacity and oilseed processing are at the center of the final 2026-2027 RFS Rule. Crucially, EPA recognizes the potential for additional investments and economic growth in rural America following the historic rule. Already, positive signs have emerged that companies are following through on current investments, planning additional investments, and returning value to the farm economy. And we are working to keep those at the center of the next RFS rule.

"A renewable fuel facility investor and the financiers who fund their projects will review the historical (e.g., did they lose money in a previous year), current, and perceived future economics of the renewable fuel market when deciding whether to continue to operate their renewable fuel facilities, and our analysis attempted to account for these factors." - EPA, RFS Program Standards for 2026 and 2027

In June, Clean Fuels wrote President Trump to say thank you and showcase how our industry quickly responded to EPA's historic RFS rule. The occasion was the June 15 "effective date" for the 2026-2027 RFS rule - an administrative date that gives all stakeholders sufficient public notice that they should plan to comply with the rule rather than just complain about it. Our letter highlighted multiple examples that U.S. biodiesel and renewable diesel producers are ramping up and making additional infrastructure investments because of the RFS rule.

Since that letter, more examples of the RFS' beneficial economic ripple effects for rural America have emerged.

On July 16, EPA itself provided the most dramatic evidence possible that our industry is responding to the historic RFS rule. EPA's data on qualifying biomass-based diesel production and D4 RIN generation for the RFS program through the month of June shows undeniably that U.S. producers are generating fuel and RINs at the rate EPA envisioned.

"These volumes reflect our assessment that the BBD industry is capable of achieving 90%+ capacity utilization, as canola and soy crush continue to grow in North America." - EPA, RFS Program Standards for 2026 and 2027 Regulatory Impact Analysis

In June 2026, U.S. biodiesel, renewable diesel, and SAF producers generated the highest single-month total of domestic fuel and D4 RINs in the program's history - 494 million gallons (809 million RINs). U.S. biodiesel producers ran at 86% of nameplate capacity, and U.S. renewable diesel producers ran at close to 80% of capacity.

Despite predictions of a "surge" in imported fuels, 95% of the qualifying BBD volume in June was produced by domestic facilities. In fact, through the first six months of the year, just 2% of the biomass-based diesel volumes generated for the RFS came from imports - the lowest percentage in recent history. The United States is currently a net exporter of biodiesel and renewable diesel. EPA data shows 375 million D4 RINs retired for exports during the first half of the year, compared to 48.6 million D4 RINs generated for imported fuel. U.S. fuel producers are leading the response and ensuring that the benefits stay in the U.S. economy.

National Oilseed Processors Association reported June soybean crush of 214.3 million bushels, an increase of 15% from the same month in 2025. And newly built or expanded crush facilities are beginning to open and ramp up their processing capacity, as EPA calculated in the RFS rule.

"Increasing domestic production of biodiesel and renewable diesel is also expected to result in increased investment in domestic oilseed crushing to supply feedstocks for biofuel production. These investments would decrease the reliance of domestic soybean producers on export markets and further benefit rural economic development and employment." - EPA, RFS Program Standards for 2026 and 2027

In June, Incobrasa Industries cut the ribbon on its new soybean processing plant in Gilman, Illinois. The new facility will process 300,000 soybean bushels per day, doubling the company's processing capacity. The new facility will provide a stable market for 7,000 local family farms, reducing reliance on export markets.

Incobrasa announced during the ribbon-cutting ceremony that it is also expanding its biodiesel production capacity in Gilman. Earlier in May, Hawaii Renewables commissioned a new renewable diesel facility in Kapolei. It shows there is still potential for fuel production growth during 2026 and 2027.

In early July, AGP shipped the first ever unit train of soybean oil out of its recently opened David City, Nebraska facility - 96 tanks cars carrying more than 20 million lbs. of soybean oil, roughly enough to produce 2.5 million gallons of fuel. This is a significant event for the industry - as well as for the U.S. rail industry - since the unit train represents a kind of rolling pipeline of oil to a specific producer. Investments in biomass-based diesel and soybean processing are creating economic opportunities for other industry sectors, as projected by EPA.

The successes from Illinois and Nebraska are mirrored by other states.

• North Dakota farmers now process nearly half the state's crop at home, significantly reducing their reliance on export markets.
• The city of Grand Forks, South Dakota, is reexamining the potential for a new soybean crush facility to accomplish the same results.
• Perdue Farms in Maryland recently partnered with Clean Fuels member Optimus Technology to deploy 100% biodiesel use in its fleet. Working with the Maryland Soybean Board, Perdue sees potential to use soybeans from within its own farm network to generate the biodiesel.

"The impacts to the local economy from investment in new renewable fuel production facilities, including increases in employment, output and income, and the subsequent increases in demand for local goods and services all create additional beneficial ripple effects." - EPA, RFS Program Standards for 2026 and 2027 Regulatory Impact Analysis

Domestic biodiesel, renewable diesel, and SAF producers clearly have the capacity and the feedstocks to meet the volumes that EPA set for 2026 and 2027. To maintain the historic growth path in future RFS rules, as an industry we need to continue to educate RFS champions (and even critics) about the beneficial economic ripple effects of that capacity which impact many in this country in such a significant way.

ABOUT CLEAN FUELS ALLIANCE AMERICA

Made from an increasingly diverse mix of resources such as recycled cooking oil, soybean oil, and animal fats, the clean fuels industry is a proven, integral part of America's clean energy future. Clean Fuels Alliance America is the U.S. trade association representing the entire biodiesel, renewable diesel and sustainable aviation fuel supply chain, including producers, feedstock suppliers and fuel distributors. Clean Fuels receives funding from a broad mix of private companies and associations, including the United Soybean Board and state checkoff organizations.

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