U.S. Renewable Fuel Requirements to Hit Record High: Kiplinger Economic Forecasts
The eco-friendly fuel will be mixed into nearly 65 billion gallons of gas.
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
To continue reading this article
please register for free
This is different from signing in to your print subscription
Why am I seeing this? Find out more here
-
Uber Earnings Miss Sends Stock Spiraling
Uber Technologies reported an unexpected first-quarter loss, sending shares lower Wednesday. Here's what you need to know.
By Joey Solitro Published
-
What’s in DeSantis’ $1.07 Billion Florida Tax Relief Bill?
State Tax A new Florida tax relief package defines 2024 sales tax holidays and cuts taxes for families and businesses.
By Katelyn Washington Published
-
Fed Rate Cuts Still on Hold
The Kiplinger Letter With inflation stubbornly elevated, the Federal Reserve will keep interest rates high for now.
By David Payne Published
-
A Spotlight on the Pacific States: The Kiplinger Letter
The Kiplinger Letter Most Pacific states are seeing good job growth in multiple sectors including tourism, hospitality, and construction.
By David Payne Published
-
The Robots Are Coming... But Not For a While
The Kiplinger Letter There’s excitement in the tech sector over the potential of humanoid robots, but widespread adoption is likely to be years away.
By John Miley Published
-
Farmers Face Another Tough Year As Costs Continue to Climb: The Kiplinger Letter
The Kiplinger Letter Farm income is expected to decline for a second year, while costs continue to up-end farm profitability.
By Matthew Housiaux Published
-
A Spotlight on the Mountain States: The Kiplinger Letter
The Kiplinger Letter Most Mountain states are seeing good job growth in multiple sectors from healthcare, energy, and semiconductor production to farming and government.
By David Payne Last updated
-
A Spotlight on the Plains States: The Kiplinger Letter
The Kiplinger Letter The labor market is tight in the Plains states and outside of healthcare and construction most sectors are flat or down.
By David Payne Published
-
Kiplinger's Commodities Forecast
The Kiplinger Letter Following a rocky few years for markets, we expect commodities to be less volatile in 2024, as a post-pandemic normal finally emerges.
By Matthew Housiaux Published
-
Growth Stalls in China As Property Market Continues to Struggle: The Kiplinger Letter
The Kiplinger Letter The property market remains a major drag on Chinese growth, with sales now 50% below their peak.
By Rodrigo Sermeño Published