Why this matters now for fleets and owner-operators

Advanced BioFuels USA’s latest curation underscores a fast-moving policy and technology landscape for low‑carbon liquid fuels. For trucking, the headline is simple: drop‑in fuels such as renewable diesel (RD) and biodiesel blends can cut lifecycle emissions without new trucks or fueling infrastructure, buying time as zero‑emission options scale. Industry reporting shows renewable diesel use expanding beyond the West Coast, with analysts projecting biomass‑based diesel could supply a far larger share of on‑road demand by 2030, and top fleets integrating RD where it pencils out.

The policy levers to watch

IRS Section 45Z Clean Fuel Production Credit: As of January 1, 2025, producers of qualifying clean transportation fuels can claim a performance‑based tax credit through December 31, 2027. The value is tied to each fuel’s lifecycle greenhouse‑gas (GHG) emissions score; producers must be properly registered (Form 637) at the time of production, and separate rules govern sustainable aviation fuel (SAF) versus non‑SAF fuels like RD and biodiesel. While fleets won’t file for 45Z directly, producer economics influence wholesale prices and supply planning—especially for multi‑state carriers negotiating bulk contracts.

What to ask suppliers: whether their volumes qualify for 45Z, which pathway/feedstock they use, and the lifecycle model behind their emissions factor (which determines the credit value).
Why it matters: higher‑value, lower‑CI pathways can support more competitive pricing or longer‑term offtake commitments that stabilize your decarbonization strategy.

EPA Renewable Fuel Standard (RFS) “Set Rule” for 2023–2025: EPA finalized volume targets that continue incremental growth for advanced biofuels and biomass‑based diesel, underpinning demand for RD and biodiesel blends used in trucking. RFS remains a foundational market signal for producers, blenders, and obligated parties, interacting with state programs and federal credits to shape availability and price in your lanes.

What fuels can you use today?

Renewable diesel (RD): Chemically similar to petroleum diesel, RD is a true drop‑in fuel compatible with existing engines and storage. Fleets report smooth transitions when switching terminals to RD, often blending with ULSD or pairing with biodiesel for targeted carbon reductions. Several major fleets already specify RD where it’s offered, including full network use in certain West Coast operations.

Biodiesel (e.g., B5–B20): Widely available and often the most cost‑effective step toward lower carbon intensity. Cold‑flow properties and OEM blend approvals vary; align seasonal blends with local temperatures and confirm engine maker guidance to avoid warranty issues. Consider B20 during warmer months and lower blends in severe cold, or leverage RD to maintain performance while lifting renewable content. (Best practice guidance aligns with common fleet experience and manufacturer recommendations reported by industry sources.)

Procurement and compliance tips

Request documentation: Ask for certificates of analysis, feedstock disclosures, and evidence of compliance under RFS (RIN generation) or state programs. These records help validate sustainability claims and support ESG reporting.
Plan for supply diversity: RD capacity is growing but still regional; line up multiple terminals and be ready to flex between RD, biodiesel blends, and conventional ULSD if markets tighten.
Model the total cost: Factor any supplier 45Z benefits (producer‑side) that may flow into pricing, RIN values under RFS, and operational impacts such as DPF performance or fuel economy.
Watch state dynamics: Where low‑carbon fuel policies exist, renewable gallons often command premiums—but they also deliver larger, verifiable GHG reductions for customer scorecards.

What trucking leaders are saying

HDT reporting highlights fleets treating advanced fuels as part of a “messy middle” strategy—cutting carbon now while they pilot battery‑electric or hydrogen for specific duty cycles. Real‑world examples include carriers running 100% RD in California and Oregon and expanding renewable content opportunistically elsewhere. For long‑haul diesel assets with years of service life left, this is the most practical near‑term lever.

The bottom line for 2026

For the next several years, advanced biofuels will do the heavy lifting on trucking decarbonization outside zero‑emission niches. Keep an eye on 45Z implementation (producer registrations and emissions factors), RFS volumes, and regional RD availability. Then build a flexible fueling playbook—RD where you can get it, smart biodiesel blending where it’s proven, and conventional ULSD as a backstop—so you can lower emissions without disrupting operations or capex plans. And use resources like Advanced BioFuels USA’s curation to track fast‑moving developments that affect supply, standards, and sustainability claims.

Sources Consulted: Advanced BioFuels USA; Internal Revenue Service; U.S. Environmental Protection Agency; Heavy Duty Trucking.

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This article was prepared exclusively for truckstopinsider.com. For professional tax advice, consult a qualified professional.