Driven by surging mandates for biomass-based diesel, the Trump administration on Friday proposed increasing the volume of biofuels that U.S. refineries must blend into the national fuel supply over the next two years. The biofuel industry welcomed the proposal after months of lobbying, as it also includes measures aimed at limiting biofuel imports.
According to the U.S. Environmental Protection Agency (EPA), the total renewable fuel blending target will rise to 24.02 billion gallons in 2026 and 24.46 billion gallons in 2027, up from 22.33 billion gallons in 2025.
Under the Renewable Fuel Standard (RFS), refiners are required to blend a certain amount of biofuels or purchase Renewable Identification Numbers (RINs) from others that meet the obligation. Small refineries may apply for exemptions if they can prove economic hardship. A key driver of this proposal is increased demand for biomass-based diesel. The EPA has set the 2026 biomass-based diesel quota at 7.12 billion RINs, representing the tradable carbon credits generated from fuel blending.
The agency expects this mandate will result in 5.61 billion gallons of biodiesel being blended. The new rule also aligns with the EPA’s plan to reduce the number of RINs generated from imported biofuels. As a result, the projected RIN generation per gallon of biodiesel would decline to 1.27 in 2026 and 1.28 in 2027, down from the previous average of 1.6.
