Washington: A coalition of U.S. oil and biofuel industry representatives met with the Environmental Protection Agency (EPA) on Tuesday, advocating for higher federal mandates for biomass diesel blending. According to sources familiar with the discussions, the proposal aims to significantly increase biofuel quotas under the Renewable Fuel Standard (RFS), reported Reuters.
The meeting suggests that the EPA may be nearing the release of updated biofuel blending requirements, marking an early test of U.S. President Donald Trump’s commitment to supporting the biofuel industry. Two sources indicated that the proposal is expected to outline mandates for the next two years and could be released as soon as this month.
In an unusual alliance, major oil companies and biofuel producers—historically competitors in the gasoline market—have worked together at the White House’s request to avoid conflicts that previously defined the Trump administration’s approach to biofuel policy.
The coalition has proposed raising biomass diesel mandates to between 5.5 billion and 5.75 billion gallons, up from the current 3.35 billion gallons, arguing that the current target falls far below the industry’s production capacity. Meanwhile, the group has agreed to set the corn-based ethanol blending mandate at 15 billion gallons, despite some members pushing for an increase to 15.25 billion gallons.
However, not all industry players support the proposal. The Fueling American Jobs Coalition, representing smaller independent refiners, voiced strong opposition to higher biomass diesel mandates.
“Imposing excessive RFS mandates could put union jobs at risk in states like Pennsylvania and Ohio while driving up fuel prices,” the group said in a statement. “We urge the EPA to avoid policies that could hurt American workers and increase inflation.”
Further division emerged as a group of truck stop operators and fuel retailers boycotted the meeting, protesting the absence of discussions on reinstating the blenders tax credit, which expired in December. They argue that its replacement, the producer tax credit known as 45Z, is ineffective and could lead to higher fuel costs for consumers.
“This will not only strain Americans financially but also create major political challenges for the EPA and the White House,” the splinter group wrote in a letter to EPA Administrator Lee Zeldin.
The EPA has not yet responded to requests for comment on the proposed mandates.
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