Under Joe Biden’s presidency, the US renewable fuels bill could garner support from both Republican and Democratic Congress. The development of renewable fuels has been supported by some companies in both the green energy and oil industries. Some refiners have been investing in renewable fuels, benefiting state and federal subsidies which can further expand the market for such fuels.
Legislators from Farm Belt states such as Illinois, Minnesota, and Iowa will likely support legislation that will expand the market for their constituents’ products. However, it remained unclear how legislators representing oil states would react to bills that shift away from the oil sector. The US oil industry has been hit hard by the coronavirus pandemic, with several refiners deciding to stop crude processing and shift focus on biofuels production.
Refiners with biofuel production can generate tradable credits thanks to incentive programs in California and Oregon. Some other states have also developed their own programs to lower their carbon intensity. In August, Biden said it would support biofuel that will help American farmers and rural communities.
