US EPA proposes increased biofuel blend volumes through 2027

Trump's proposal signals support for the biofuels industry

The total volume of blending is increased by about 2 billion gallons

The proposal includes an increase in biomass-based fuel mandates

By Stephanie Kelly

NEW YORK - On Friday, the Trump administration proposed that oil refiners increase the amount biofuels they must mix into the nation's gasoline over the next two-years, due to a rise in biomass-based fuel mandates.

Biofuels industry welcomed the move which included measures to discourage imports of biofuels. They had been lobbying for this issue for several months.

The U.S. Environmental Protection Agency announced on Friday that the total volume of biofuels to be blended in 2026 will be 24.02 billion gallon and 24.46 in 2027. This compares to blending requirements of 22,33 billion gallons for 2025.

The Renewable Fuel Standard requires refiners to either blend biofuels in large quantities into the fuel supply of the country or buy credits (called RINs) from those who do.

This proposal is partly driven by an increase in the biomass-based requirements for diesel. The EPA has set a quota for biomass-based RINs (a measure of the number tradable credit generated by blending fuel) of 7,12 billion.

The mandate, it said, would result in the mixing of 5,61 billion gallons. The EPA expressed biomass-based diesel requirements in billions of RINs to comply with its proposal to reduce RINs generated by imported biofuels.

The EPA projected that after accounting for the import of biofuels the number RINs for biomass-based Diesel would be 1,27 and 1,28 RINs respectively in 2026. Previously, the EPA estimated that a gallon of biomass diesel would generate 1.6 RINs.

The biomass-based fuel volume mandate was set at 3.35 billion gallons for 2025, which the industry complained was too low.

Oil and biofuels industries, two major lobbying forces in Washington, eagerly awaited the release of this proposal. If finalized, it will determine the fate of billions in fuel transactions and credit trades.

The proposal, one of the earliest decisions taken by the Trump administration in regards to federal biofuel policy signals the administration's commitment to the biofuels sector, which at times has been at odds against oil companies.

In a move that was historically unprecedented, a coalition of oil and biomass groups came together earlier this year in order to request blending biomass diesel for 2026. This compares with 3.35 billion gallon in 2025.

The coalition led by the American Petroleum Institute argued that previous EPA mandates had failed to support growth in the advanced biofuels industry and undermined the market. (Reporting and editing by PhilippaFletcher in New York, Stephanie Kelly)

(source: Reuters)