The EIA forecast production of both fuels to increase as the year progresses but biodiesel production to remain less than in 2024. Renewable diesel and biodiesel are biomass-based diesel fuels that can replace petroleum-based distillate and be used to comply with renewable volume obligations in the Renewable Fuel Standard (RFS) administered by the US Environmental Protection Agency (EPA). The decrease in renewable diesel production was not as large on a percentage basis as the decrease in biodiesel production, mostly because renewable diesel production increased at a greater rate than biodiesel production in 2024. Reduced output at renewable diesel plants was partially offset by the nearly 20% increase in renewable diesel production capacity since 1Q24. However, compared with 4Q24, when renewable diesel production capacity was comparable to current levels, 1Q25 production was down almost 25%.