EPA Aims to Limit Imports and Support Renewable Fuel Production
The Environmental Protection Agency (EPA) has unveiled a proposal to significantly raise biofuel blending quotas for 2026.
The move, led by President administration, aims to enhance domestic biofuel production, support rural economies, and reduce import reliance.
The 2026 biofuel quota is set at 24.02 billion gallons, an 8% increase from 2025. The EPA is also proposing 5.61 billion gallons of biomass-based diesel—up 67% from 2025 levels. These changes aim to promote U.S. agriculture, especially ethanol and soybean sectors.
To protect domestic producers, the EPA plans to cut RINs by 50% for imported biofuels or those using foreign feedstocks. This effort will reduce the market value of international fuels and encourage local sourcing.
The policy also introduces tighter tracking rules to prevent fraud and mislabeling of feedstocks.
“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.”
The proposal received strong backing from ethanol and biodiesel producers and lawmakers from farming states. Green Plains Inc. saw a 20% rise in its share price after the announcement, and soybean oil prices rose 6.2%. Meanwhile, independent refiners argue the plan could drive up RIN prices and threaten refinery operations.
To address criticism from biodiesel advocates, the EPA will adjust credit values for renewable diesel and jet fuel. It also plans to block credits from being generated by charging electric vehicles using non-renewable power sources.
The EPA hasn’t yet resolved how to handle small refinery exemptions but promises an update before finalizing the 2026 and 2027 quotas.