Fuel Rivals Unite: Can EPA Bring the Clarity Clean Energy Needs?

Biofuel and oil giants join forces, urging the EPA to implement long-term rules to steady clean fuel investments and markets.

4 Apr 2025

In a surprising twist, longtime fuel competitors are teaming up to tackle a shared problem: regulatory uncertainty that could slow down America’s clean energy progress.

The Environmental Protection Agency is about to update its Renewable Fuel Standard blending rules, which dictate how much ethanol, biodiesel, and other renewable fuels must be mixed into the nation’s gasoline and diesel. Usually, the EPA sets these targets for three years. But the new proposal is expected to cover only two years, a move that’s raising alarms.

Producers and investors rely on clear, long-term signals to back billions in clean energy projects and infrastructure. Without that certainty, companies are hesitating, delaying expansions, and pulling back on growth plans in a market that’s already unpredictable.

This uncertainty has sparked an unusual alliance. Oil refiners are joining forces with biofuel giants like POET and trade groups such as Growth Energy and Archer Daniels Midland. Together, they’re pressing the EPA to adopt multi-year targets that can bring steadiness, attract investments, and push forward national climate goals.

“Short-term rules create long-term problems,” said Growth Energy’s CEO. “To power the clean energy transition, we need Washington to provide long-term certainty.”

The pressure on the EPA heated up after an April 1, 2025 meeting, where this coalition urged the agency to increase federal mandates for biomass-based diesel blending. Their joint push underlines how critical predictable fuel policies have become.

Some companies are already adjusting to the shifting landscape. POET has ramped up international ethanol exports to hedge against uncertain domestic policies. Meanwhile, ADM is speeding up investments in sustainable aviation fuel, diversifying to reduce risk from policy changes.

Growth Energy has even taken legal action, filing notice to sue the EPA over delays in setting the 2026 Renewable Volume Obligation. This step signals growing frustration with missed deadlines and what the biofuel sector sees as a lack of federal oversight.

Critics argue the biofuel industry depends too much on government rules. Yet, even skeptics agree that clear, consistent policies are vital during this energy transition.

With the EPA’s decision looming, the future of the U.S. biofuel market is uncertain. Will the agency offer the steady guidance the industry needs or deepen the unpredictability? One thing is certain: rivals who once clashed are now pushing forward together.