A coalition of U.S. oil and biofuel industry groups has recommended that the Environmental Protection Agency (EPA) set federal mandates for biomass-based diesel blending at 5.25 billion gallons for 2026, marking a significant increase from previous levels, sources familiar with the matter told Reuters.
The coalition, led by the American Petroleum Institute (API), also proposed a total biofuel blending mandate of 25 billion gallons for 2026. The figures were presented to the EPA during a meeting last week.
While the recommendations were focused on 2026, the EPA is expected to propose mandates for both 2026 and 2027, as reported by Reuters earlier.
API declined to comment on the specific figures, and the EPA did not respond to requests for comment.
The proposed 5.25 billion gallons for biomass-based diesel was slightly lower than the previously considered range of 5.5 billion to 5.75 billion gallons, which had been reported by Reuters ahead of the meeting.
Traditionally, big oil companies and biofuel producers from the U.S. Farm Belt are competitors in the multi-billion-dollar U.S. gasoline market. However, they have recently come together to form a consensus at the request of the White House, aiming to avoid the conflicts that characterized the early years of the Trump administration. The new 5.25 billion-gallon figure aligns with recommendations made to the EPA by Clean Fuels Alliance America, a U.S. biodiesel trade group, along with various farm and feedstock organizations.
In a mid-March letter to EPA Administrator Lee Zeldin, the coalition argued that previous EPA mandates had failed to support the growth of the advanced biofuel industry and had undermined the market.
For 2025, the EPA has set biomass-based diesel mandates at 3.35 billion gallons.
Under the U.S. Renewable Fuel Standard, oil refiners are required to blend billions of gallons of biofuels into the national fuel supply or purchase tradable credits from those who do.
Related Topics:
- Where to Dispose of Contaminated Diesel Fuel
- Understanding the Hazard Class of Diesel Fuel: A Comprehensive Guide
- 9 Best Diesel Treatments for Winter: Protecting Your Diesel Engine