In an effort to reduce harmful pollution, the U.S. enforces renewable fuel requirements. To help you understand what is going on and what we expect to happen in the future, our highly-experienced Kiplinger Letter team will keep you abreast of the latest developments and forecasts (Get a free issue of The Kiplinger Letter or subscribe). You'll get all the latest news first by subscribing, but we will publish many (but not all) of the forecasts a few days afterward online. Here’s the latest...
Uncle Sam will require a record amount of renewable fuel to be mixed into gas and diesel over the next three years, from 20.94 billion gallons in 2023 to 21.54 billion gallons next year and 22.33 billion in 2025.
The goal is to help absorb the rapidly expanding output of renewable diesel, processed from fats and oils to be chemically identical to diesel fuel. Tax credits at the federal and state levels have led to a 15-fold increase in the fuel since 2013.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
But the industry says the new targets still leave producers at risk of oversupply, possibly resulting in idle plants and curtailed investments, though not everyone agrees with this assessment. More than 20 facilities for the production of renewable diesel are now planned or under construction.
Conventional ethanol made from corn is taking a back seat as regulators lower ethanol quotas over the next three years, a blow to farmers and ethanol makers. One controversial proposal that did not wind up making the final cut: Incorporating electric vehicle (EVs) charging into the renewable fuel standard. But it’s possible regulators will revisit this idea in the future.
This forecast first appeared in The Kiplinger Letter, which has been running since 1923 and is a collection of concise weekly forecasts on business and economic trends, as well as what to expect from Washington, to help you understand what’s coming up to make the most of your investments and your money. Subscribe to The Kiplinger Letter.
Related Content
-
Stagflation: What It Is and Why Retirees Should CareStagflation — the economic bogeyman of the 1970's — may return to the US. Here's what it could mean to your retirement.
-
Why Losing Your Job Could Be the Best Opportunity to Plan Your FutureAmid this uncertainty lies an opportunity for strategic reassessment and personal growth.
-
What DOGE is Doing NowThe Kiplinger Letter As Musk's DOGE pursues its ambitious agenda, uncertainty and legal challenges are mounting — causing frustration for Trump.
-
A Move Away From Free TradeThe Letter President Trump says long-term gain will be worth short-term pain, but the pain could be significant this year.
-
Trump’s Whirlwind Month of Crypto MovesThe Kiplinger Letter The Trump administration wants to strengthen U.S. leadership in the cryptocurrency industry by providing regulatory clarity.
-
What Could Derail the Economy This Year?The Letter While the outlook for the U.S. economy is mostly favorable, there are plenty of risks that bear watching.
-
Three Ways President Trump Could Impact the EconomyThe Letter Some of Trump's top priorities could boost economic growth, but others risk fueling inflation.
-
10 Predictions for 2025 from The Kiplinger LetterThe Kiplinger Letter As 2025 arrives, here are our top 10 forecasts for the new year.
-
Europe Faces Economic and Political Headwinds Next YearThe Letter Challenges for Europe: Potential tariffs, high energy prices and more competition from China will weigh on the bloc in 2025.
-
Don't Sleep on Japan's Economic TransformationThe Letter After almost three lost decades, Japan — one of the world's biggest economies — is finally showing signs of life.
