# Policy Priorities for Biomass-Based Diesel

> University of Illinois farmdoc researchers argue that a binding RFS volume mandate, rather than tax credits, determines biomass-based diesel demand. They examine alternative scenarios for 2026 RVOs and what each implies for the BBD demand ceiling. The piece is part of a series on the renewable diesel boom.

- Date: 2025-02-01 · published 2025-02-01T12:00:00.000Z
- Category: policy · region US · magnitude low
- Page: https://feedsoft.ai/events/15151-policy-priorities-for-biomass-based-diesel
- Commodities: [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

The size of the 2026 RVO sets the demand ceiling for soybean oil going into biofuels, so scenarios that lower mandates would be bearish for soybean oil prices.

## Read by commodity

- SBO: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SBO | 2021-06-23 | [Biomass-Based Diesel: Renewable Diesel Outperforms But Feeds](https://feedsoft.ai/events/46444-biomass-based-diesel-renewable-diesel-outperforms-but-feeds.md) | +3.7% | +6.4% |
| SBO | 2023-03-16 | [ASA to EPA: adjust the blending targets for biomass-based diesel – Radio Keokuk](https://feedsoft.ai/events/15324-asa-to-epa-adjust-the-blending-targets-for-biomass-based-diesel-radio-keokuk.md) | +0.3% | -4.4% |
| SBO | 2024-12-30 | [COMMODITIES 2025: US biomass-based diesel market faces cost, regulatory challenges \| S&P Global](https://feedsoft.ai/events/15157-commodities-2025-us-biomass-based-diesel-market-faces-cost-regulatory.md) | -1.7% | +11.0% |
| SBO | 2025-01-02 | [Biofuels Positioned for 2025 Success Despite Policy Uncertainty](https://feedsoft.ai/events/15150-biofuels-positioned-for-2025-success-despite-policy-uncertainty.md) | -0.6% | +10.7% |
| SBO | 2019-07-29 | [Federal Register
       :: 
      Renewable Fuel Standard Program: Standards for 2020 and Biomass-Based Diesel Volume for 2021, Response to the Remand of the 2016 Standards, and Other Changes](https://feedsoft.ai/events/57954-federal-register-renewable-fuel-standard-program-standards-for-2020-and-biomass.md) | -1.0% | -0.5% |

## Sources

- farmdocdaily.illinois.edu: https://farmdocdaily.illinois.edu/2025/01/policy-priorities-for-biomass-based-diesel.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.