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Clean Fuels Alliance America

Clean Fuels outlines biobased diesel industry’s beneficial impact on fuel prices to President Biden


Clean Fuels Alliance America wrote to President Joe Biden, administration officials, and congressional leaders June 22 to say that U.S. biodiesel and renewable diesel producers are working to extend fuel supplies and provide relief at the pump to American families. The letter expresses appreciation for the administration’s recent actions to grow Renewable Fuel Standard volumes for advanced biofuels and biomass-based diesel and provide additional infrastructure grants to improve consumer access to biodiesel.

“Our industry is investing billions to expand production of biodiesel, renewable diesel, and sustainable aviation fuel to further extend consumer access to clean fuels,” the letter states. “Our partners in the agriculture industry are investing more than $4 billion to expand the supply of renewable oils for both food and clean fuels.”

The letter continues, stating, “U.S. biodiesel and renewable diesel producers are supplying more than 3.2 billion gallons of cleaner, better fuel to the U.S. market, meeting more than 5 percent of the nation’s demand for on-road heavy-duty fuels. These fuels are essential to keeping food and other consumer items moving across the country and are keeping diesel prices from rising even higher during the current shortage.”

The letter further highlights a recent study from the World Agricultural Economic and Environmental Service showing that U.S. biodiesel and renewable diesel production generates a 4 percent decrease in the price of diesel fuel.

“U.S. biodiesel and renewable diesel producers are providing essential fuel supplies and meeting the nation’s transportation needs with better, cleaner, homegrown fuels,” said Kurt Kovarik, Clean Fuels’ vice president of federal affairs. “As the Biden administration explores ways to increase fuel supplies and provide Americans relief from high prices, our industry is working and investing to build additional capacity and infrastructure. We look forward to working with the administration to further grow the Renewable Fuel Standard volumes that support our industry.”

The full letter is available here.

The U.S. biodiesel and renewable diesel industry supports 65,000 U.S. jobs and more than $17 billion in economic activity each year. Every 100 million gallons of production supports 3,200 jobs and $780 million in economic opportunity. Biodiesel production supports approximately 13 percent of the value of each U.S. bushel of soybeans.

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