As 2025 comes to a close, renewable fuels policy has seen no shortage of movement. From proposed tax credit reinstatements to renewed attention on sustainable aviation fuel incentives, several developments are already influencing market conversations. In this grab bag, RINSTAR breaks down the latest legislative actions and RFS signals that could impact compliance strategies moving into the new year.
1. Bipartisan Momentum to Reinstate the Biodiesel Tax Credit
Sen. Marsha Blackburn (R-Tenn.) recently introduced the Consumer Relief and Opportunities for Producers (CROP) Act (S.3297), a bill designed to temporarily reinstate the biodiesel blenders tax credit through May 31, 2026. If passed, this would restore the $1.00 per gallon biodiesel credit that expired at the end of 2024, providing a short-term boost to biodiesel and renewable diesel blenders.
2. SAF Act Aims to Bring Back a SAF Premium Under 45Z
A bipartisan group of lawmakers in the House introduced the Securing America’s Fuels (SAF) Act, a proposal to restore a SAF-specific premium within the Section 45Z Clean Fuel Production Credit and extend the credit timeline. Under earlier iterations of the 45Z tax code, SAF qualified for a higher per-gallon tax credit (up to $1.75) compared with other clean fuels. The SAF Act proposes reinstating that differential, making SAF even more financially attractive for producers and blenders.
Currently, the 45Z Clean Fuel Production Credit starts with relatively small base incentives ($0.20 per gallon for non-aviation fuels and $0.35 per gallon for SAF). Those amounts can grow if producers meet prevailing wage and apprenticeship requirements. Reintroducing a SAF-specific premium is meant to help get investment moving again, especially after momentum slowed when the standalone SAF tax credit expired in 2024.
3. RFS Signals & EPA Data Drops Round Out the Picture
Recent EPA data showed that 1.78 billion Renewable Identification Numbers (RINs) were generated in November 2025 under the RFS, slightly below the prior year, with total generation for the first 11 months at over 21 billion RINs.
Additionally, eight new small refinery exemption (SRE) petitions were filed under the RFS in the past month, bringing the total pending petitions to 25.
While the EPA has yet to finalize the 2026 and 2027 RFS RVOs, notices filed with the U.S. Court of Appeals indicates that final action is expected in early 2026.
As these developments show, the renewable fuels landscape is heading into 2026 with both opportunity and uncertainty. Proposed tax credit reinstatements, renewed attention on SAF incentives, and evolving RFS signals all point to a policy environment that remains very much in motion. For producers, blenders, and obligated parties alike, staying informed will be critical as legislative proposals advance, EPA data continues to shape market expectations, and final RVO decisions come into focus. At RINSTAR, we’ll continue monitoring these changes closely and breaking down what they mean for your compliance strategy as the year ahead takes shape.
Stay Informed
With multiple legislative proposals in play, evolving clean fuel tax credits, and key EPA decisions still ahead, the renewable fuels policy landscape remains highly dynamic. Efforts to reinstate biodiesel tax credits, restore SAF incentives under 45Z, and finalize upcoming RFS volume obligations will all play a role in shaping compliance strategies and market activity in 2026. As these policies continue to take shape, staying informed will be essential for producers, blenders, and obligated parties navigating an increasingly complex regulatory environment.
To stay ahead, subscribe to our newsletter and follow the RINSTAR blog for timely insights on:
- Federal tax credit developments impacting biodiesel, renewable diesel, and SAF
- EPA data releases and RFS market signals
- Updates on upcoming RVOs and compliance timelines
- Policy changes influencing clean fuel investment and strategy
Have questions about how these developments could affect your compliance obligations or business planning?
📩 Reach out to us at services@cfch.com or schedule a personalized RINSTAR demo to see how we help simplify compliance in a changing regulatory environment.
