Trump Administration Boosts Biofuel Mandate by 8%

The Trump administration has announced plans to increase the mandate for biofuel blending in gasoline and diesel, while also restricting the import of biofuels. According to a news release from the Environmental Protection Agency (EPA) on Friday, the proposal requires refineries to blend a record 24.2 billion gallons of biofuel into conventional transportation fuels next year. This figure is nearly 8% higher than the 2025 target but falls short of the expectations of some oil companies and biofuel producers.

This initiative marks a significant step in President Donald Trump's efforts to modify the Renewable Fuel Standard (RFS) program, which was established by Congress two decades ago. The RFS aims to boost domestic demand and support rural communities. The EPA's latest proposal advances reforms designed to promote U.S. biofuel production and curb imports.

“We are creating a new system that benefits American farmers,” said EPA Administrator Lee Zeldin in a statement. “We can no longer accept a system where Americans pay foreign competitors.”

This move represents a key milestone in Trump's renewable fuel policy for the year and underscores his stance on this contentious issue. Throughout his first term, he has struggled to balance the interests of oil refineries and ethanol producers, who often have opposing views.

However, the administration has temporarily sidestepped one of the most contentious issues: whether to grant exemptions to small refineries from their blending obligations for past years. Anonymous sources familiar with the matter revealed that the EPA's proposal does not address this topic and provides no details on how to handle any exempted volumes.