The administration of President Donald Trump plans to finalizs 2026 biofuel blending quotas by early March, keeping them close to its initial proposal while dropping a plan to penalise imports of renewable fuels and feedstocks, according to two sources familiar with the plans.
According to Rueters, if finalised, the plan would mark a partial compromise between rival oil and farm industry groups by preserving increased blending targets sought by biofuel producers while dropping a proposal that U.S. refiners had warned would disrupt fuel markets and raise costs.
The U.S. Environmental Protection Agency, which oversees U.S. biofuel policy, has told industry stakeholders it aims to send the final proposal to the White House budget office for review later this month, with finalization expected roughly 30 days later after the White House conducts industry interviews.
The EPA in June proposed total biofuel blending volumes at 24.02 billion gallons in 2026 and 24.46 billion gallons in 2027, up from 22.33 billion gallons in 2025. The total included a target of 5.61 billion gallons for bio-based diesel, a significant jump from the 3.35 billion gallons in 2025.
