In a significant move underscoring its commitment to renewable liquid heating fuels, NEFI sent a letter to Lee Zeldin, the new Administrator of the U.S. Environmental Protection Agency (EPA), requesting support for higher advanced biofuel volumes under the Renewable Fuel Standard (RFS) for 2026 and beyond. The letter reinforces the important role that the agency's market-based RFS program plays in ensuring adequate supplies of biodiesel and renewable diesel for use in the space heating market.

Thursday's letter to the EPA comes on the heels of an historic coalition effort by industry stakeholders that includes traditional rivals - from renewable fuel producers to major oil companies - who have united to advocate for robust renewable fuel policies. NEFI's advocacy aligns with the February joint letter to Administrator Zeldin from a diverse coalition including the American Petroleum Institute (API), Advanced Biofuels Association (ABFA), Clean Fuels Alliance, and numerous other energy stakeholders.

"This coalition of traditional petroleum interests, biofuel producers, and their trade associations represents a watershed moment," said Jim Collura, NEFI President & CEO. "Despite turbulent political winds, the market fundamentals are aligning in support of energy diversity, affordability, and choice. We must advocate for these policies at all levels of government, especially as states continue to push costly electrification initiatives when lower-cost options are readily available – namely, renewable liquid heating fuels and the efficient heating systems designed for high blends of these fuels."

In its letter, NEFI requested an increase to the renewable volume obligation (RVO) for biomass-based diesel (BBD), which includes biodiesel and renewable diesel, to 5.25 billion gallons for 2026, with progressive increases thereafter. This increase is crucial for ensuring reliable supplies of these fuels for the heating sector, particularly as the statewide blending requirement for heating oil will increase to 10% in Administrator Zeldin's home state of New York beginning on July 1. Similar requirements in Connecticut and Rhode Island will also increase to 10% and 20%, respectively.

The letter also highlights NEFI’s consumer choice efforts with respect to the agency’s ENERGY STAR^® program. NEFI notes its successful efforts to preserve conventional furnaces and boilers the program following efforts by the previous administration to remove such systems. It also notes the recent inclusion of requirements for oil-fired furnaces to be designed for use with higher blends of renewable fuels, and advocates extending similar renewable-fuel compatibility requirements to oil-fired boilers within the program. These measures would advance the transition to renewable liquid heating fuels while preserving existing infrastructure and access to affordable heating solutions.

The Trump Administration has thus far indicated its strong support for biofuels. The president's "Unleashing American Energy" executive order specifically identifies biofuels as domestic energy resources deserving of protection from undue regulatory burdens. As we reported last week, the administration also "unfroze" $537 million in funding for the Higher Blends Infrastructure Incentive Program (HBIIP) while funding freezes for various electrification programs remain in place.

"We are encouraged by the administration's support," added Collura. "With the guidance and support of our valued members, NEFI will continue working to ensure their voices are heard in the shaping of federal energy policy."

For more information contact NEFI President & CEO Jim Collura at jim.collura@nefi.com.