U.S. Biodiesel and Renewable Diesel Imports Hit Decade Low After Tax Credit Overhaul

U.S. imports of biodiesel and renewable diesel have plunged to their lowest level in more than a decade following changes to federal tax credits, the Energy Information Administration (EIA) reported Thursday. In the first half of 2025, biodiesel imports averaged just 2,000 barrels per day, down sharply from 35,000 bpd a year earlier. Renewable diesel imports fell to 5,000 bpd from 33,000 bpd over the same period. The decline stems from a new tax credit structure that favors domestic production, ending the $1-per-gallon incentive previously available to imports. The EIA noted that imports now face a significant economic disadvantage, compounded by weak blending margins and uncertainty around regulatory requirements. While consumption is expected to rise later this year to meet Renewable Fuel Standard mandates, imports will likely stay subdued, with the EIA forecasting 2025 and 2026 levels to be the lowest since 2012.