 (copy).jpg)
15 January 2026 at 06:11 pm IST
The Trump administration is set to finalize US biofuel blending quotas for 2026 by early March, largely maintaining proposed volume increases while abandoning a controversial plan to penalize imports of renewable fuels and feedstocks, according to sources familiar with the matter. The move signals a strategic compromise between powerful oil and agricultural interests as the White House seeks to boost domestic biofuel production without driving up fuel prices. The Environmental Protection Agency (EPA) plans to submit the final rule to the White House budget office later this month, with final approval expected roughly 30 days later. Under the proposal unveiled in June, total biofuel blending volumes would rise to 24.02 billion gallons in 2026 and 24.46 billion gallons in 2027, up from 22.33 billion gallons in 2025. Bio-based diesel targets, initially set at 5.61 billion gallons for 2026, are now being reconsidered within a slightly lower range of 5.2 to 5.6 billion gallons. The adjustment reflects the EPA’s decision to drop an “America First” provision that would have sharply reduced renewable fuel credits for imported biofuels—a policy cheered by biodiesel producers but criticized by refiners for potentially disrupting supply and increasing gasoline and diesel costs. The rollback appears aimed at keeping fuel affordable as energy prices remain a politically sensitive issue ahead of midterm elections. Markets reacted positively to the news, with soybean futures and soyoil prices climbing on expectations of sustained biofuel demand. Meanwhile, the EPA still faces a key decision on whether large refiners must offset gallons exempted under the small refinery waiver program—an outcome that could significantly influence final blending volumes. While the agency says it is still reviewing public comments, the emerging framework suggests biofuels will retain a meaningful role in the US energy mix, even as the administration prioritizes cost control and energy security alongside sustainability objectives.
