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Trump plans to strengthen mandatory biofuel requirements by 2027

The Trump administration has recently unveiled a significant proposal aimed at substantially increasing the proportion of renewable fuels blended into the U.S. fuel supply over the next two years. Led by the U.S. Environmental Protection Agency (EPA), the proposal recommends raising the total renewable fuel targets to 24.02 billion gallons in 2026 and 24.46 billion gallons in 2027, up from the 22.33 billion gallons set for 2025. This initiative places strong emphasis on increasing the mandatory use of biomass-based diesel and includes provisions to limit the import of biofuels, aiming to boost domestic production.

The EPA proposes setting the Renewable Identification Number (RIN) quota for biomass-based diesel at 7.12 billion in 2026, which is expected to correspond to 5.61 billion gallons of fuel. It also estimates that each gallon of biomass 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. This reflects the agency’s policy direction to reduce reliance on imported RINs and prioritize the development of a domestic renewable fuel supply chain.