By Jamie Martin
The U.S. Environmental Protection Agency (EPA) has proposed a major increase in biofuel quotas for 2026, aiming to support domestic agriculture and reduce reliance on imports.
The plan, introduced under President, mandates blending 24.02 billion gallons of biofuels into gasoline and diesel—nearly 8% higher than the 2025 target.
A key change is a move to discourage imports. The EPA plans to halve the credits, known as Renewable Identification Numbers (RINs), for imported biofuels or those made using foreign feedstocks.
Around 45% of biomass-based diesel and its ingredients came from abroad last year.
"We are creating a new system that benefits American farmers," said EPA Administrator Lee Zeldin. "We can no longer afford to continue with the same system where Americans pay for foreign competitors."
Soybean oil futures surged by 6.2% following the announcement, and ethanol producers like Green Plains Inc. saw a 20% stock increase.
Biodiesel producers and farm-state lawmakers have applauded the plan, while independent refiners expressed concern over rising credit costs.
Biomass-based diesel targets are also increasing—from 3.35 billion gallons in 2025 to 5.61 billion gallons in 2026. EPA is transitioning these quotas to credit-based targets, simplifying compliance while reflecting production levels.
The EPA plans to lower RINs for renewable diesel and jet fuel due to fossil-based hydrogen use and proposes additional rules to prevent fraud, including stricter documentation on feedstock origins.
Despite strong support from farm states, refiners warn the aggressive mandates may harm small refining operations.
The EPA has deferred decisions on whether to grant small refinery exemptions for past years, promising clarity before 2026 and 2027 targets are finalized.
Photo Credit: photo-credit-vista-mipan
Categories: National