The Trump administration unveiled a proposal to significantly raise the volume of biofuels that oil refiners must blend into the US fuel supply over the next two years.
The move is largely driven by a sharp increase in biomass-based diesel mandates and includes provisions aimed at curbing biofuel imports.
The Environmental Protection Agency (EPA) proposed total renewable fuel volumes of 24.02 billion gallons in 2026 and 24.46 billion gallons in 2027—an increase from 22.33 billion gallons set for 2025 under the Renewable Fuel Standard (RFS).
The RFS requires refiners to either blend renewable fuels into gasoline and diesel or purchase compliance credits known as Renewable Identification Numbers (RINs). Small refineries may seek exemptions if they can demonstrate that meeting the requirements would cause undue financial hardship.
A key driver behind the increase is the rising mandate for biomass-based diesel. The EPA proposed a quota of 7.12 billion biomass-based diesel RINs for 2026, which it estimates will result in the blending of 5.61 billion gallons. These targets reflect the agency’s efforts to reduce the number of RINs that can be generated from imported biofuels and to prioritise domestic production.
As a result of the proposed cap on import-based RINs, the EPA projects each gallon of biomass-based diesel will generate 1.27 RINs in 2026 and 1.28 RINs in 2027—down from the previous estimate of 1.6 RINs per gallon.
“USDA and EPA have never been more aligned on the need for more American-grown biofuels,” said US Secretary of Agriculture Brooke L. Rollins.
Geoff Cooper, President of the Renewable Fuels Association, added: “The volumes proposed today provide crucial growth opportunities for US ethanol producers and farmers.”