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Biofuels sector confident in meeting higher blending requirements

The vice president of federal affairs with Clean Fuels Alliance America says the EPA’s higher biomass-based diesel volumes, finalized in March, are already creating a turnaround for the biofuels sector.

Kurt Kovarik tells Brownfield “We were at 50 percent of capacity for much of 2025, we’re already above 70 percent of capacity just a few months after this proposal went into effect.”

In EPA’s latest Renewable Volume Obligations (RVOs), fuel suppliers are required to blend 5.4 billion gallons of biomass-based diesel in 2026, and 5.7 billion gallons in 2027.

That’s the highest the blending requirements have ever been for the sector, and Kovarik says it’s an appropriate trajectory given soy crush expansion.

“If you think about a state like North Dakota that used to ship 70 percent of the soybeans as a whole bean to China is now only shipping 45 percent because we’ve got expanded crush there. Nebraska now processes 75 percent of their their state’s soybeans.”

Kovarik says the biofuels industry has more work to do to meet the requirements, but it’s up to the task.

“We’ve got nine months to meet a 12-month RVO and all of that takes time. You know, putting the contracts in place for the feedstock, getting them, getting the purchase of arrangements in place for the fuel.”

In a letter to President Trump sent this week, CFAA says the administration made the right decision to finalize the higher RVOs. The letter was sent after the American Fuel and Petrochemical Manufacturers said they would be challenging the latest RFS volumes.

“If the administration believed the value in all of those components in March and the industry is doing it, there is no reason to second guess as to what you did in March is still appropriate in June.”

Kovarik says he’s not worried about the litigation and believes the industry can defend the volumes.