WASHINGTON, DC – Today, Clean Fuels Alliance America shared with EPA Administrator Lee Zeldin projections of the economic impact for U.S. soybean farmers and processors of EPA’s proposed supplemental “SRE reallocation volume” to the 2026 and 2027 RFS volumes. EPA is co-proposing to either fully (100%) or partially (50%) account for 2023-25 small refinery exemptions granted this year by adding a supplemental volume in 2026 and 2027. The agency is also taking comment on other volumes, including 0%.
“U.S. soybean farmers and processors could lose between $3.2 billion and $7.5 billion in crop value over the next two years if EPA does not completely reallocate recently exempted RFS volumes,” Clean Fuels writes in a letter to Zeldin. “With increased farm productivity, U.S. soybean growers are right now harvesting a projected 4.3 billion bushels of soybeans for the season worth $43 billion. And with more than $6 billion of investment, U.S. soybean processors are expected to crush a record 2.5 billion of those bushels next year. Facing retaliatory trade measures from China and growing global competition from countries like Argentina and Brazil, America’s farmers can not afford to lose the value that U.S. biomass-based diesel brings.”
Clean Fuels engaged World Agricultural Economic and Environmental Services (WAEES) to provide EPA economic analysis of the co-proposed 100% and 50% reallocation supplemental volumes as well as a scenario with 0% reallocation.
WAEES’ analysis indicates that if EPA adopts the 50% reallocation proposal rather than complete (100%) reallocation, the results over the 2026 – 2027 timeframe will include:
- 490 million gallons in lost biomass-based diesel production;
- $1.4 billion in lost soybean farm revenue; and
- a $1.8 billion drop in the value of soybean products to soybean crushers.
If EPA fails to reallocate any of the exempted volumes, WAEES’ analysis shows the results over the 2026 – 2027 timeframe will be considerably worse:
- 1 billion gallons in lost biomass-based diesel production;
- $2.6 billion in lost soybean farm revenue; and
- a $4.9 billion drop in the value of soybean products to soybean crushers.
Kurt Kovarik, Clean Fuels’ Vice President of Federal Affairs, stated, “Clean Fuels urges EPA to quickly finalize the robust, timely RFS volumes it proposed in June and ensure they are not eroded by small refinery exemptions. U.S. biodiesel and renewable diesel production supports 10 percent of the value of every bushel of soybeans grown here. Supporting continued growth of U.S. biomass-based diesel is crucial right now to support American farmers and the agricultural economy.”
The letter is available on cleanfuels.org.
