{"id":286127,"date":"2026-01-15T17:29:05","date_gmt":"2026-01-15T17:29:05","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/286127\/"},"modified":"2026-01-15T17:29:05","modified_gmt":"2026-01-15T17:29:05","slug":"exclusive-us-to-finalize-2026-biofuel-quotas-by-early-march-drop-import-penalties-sources-say","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/286127\/","title":{"rendered":"Exclusive: US to finalize 2026 biofuel quotas by early March, drop import penalties, sources say"},"content":{"rendered":"<ul data-testid=\"Summary\" class=\"summary-module__summary__QjADA\">\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">Trump administration to finalize 2026 biofuel quotas by early March<\/li>\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">EPA may adjust bio-based diesel targets slightly lower<\/li>\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">Moves reflect compromise between biofuel producers and oil refiners<\/li>\n<\/ul>\n<p>Jan 15 (Reuters) &#8211; The administration of President Donald Trump plans to finalize 2026 biofuel blending quotas by early March, keeping them close to its initial proposal while dropping a plan to penalize imports of renewable fuels and feedstocks, according to two sources familiar with the plans.<\/p>\n<p>If finalized, the plan would mark a partial compromise between rival oil and farm industry groups by preserving increased blending targets sought by biofuel producers while dropping a proposal that U.S. refiners had warned would disrupt fuel markets and raise costs.<\/p>\n<p data-testid=\"promo-box\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf article-body-module__promo-box__hVl8h\"> Sign up  <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/sustainability\/climate-energy\/us-finalize-2026-biofuel-quotas-by-early-march-drop-import-penalties-sources-say-2026-01-15\/undefined?location=article-paragraph&amp;redirectUrl=%2Fsustainability%2Fclimate-energy%2Fus-finalize-2026-biofuel-quotas-by-early-march-drop-import-penalties-sources-say-2026-01-15%2F\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">here.<\/a><\/p>\n<p>The U.S. Environmental Protection Agency, which oversees U.S. biofuel policy, has told industry stakeholders it aims to send the final proposal to the White House budget office for review later this month, with finalization expected roughly 30 days later after the White House conducts industry interviews.<\/p>\n<p>The EPA <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/sustainability\/climate-energy\/us-epa-propose-renewable-fuel-credits-generated-through-imported-feedstocks-2025-06-13\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">in June<\/a> proposed total biofuel blending volumes at 24.02 billion gallons in 2026 and 24.46 billion gallons in 2027, up from 22.33 billion gallons in 2025. The total included a target of 5.61 billion gallons for bio-based diesel, a significant jump from the 3.35 billion gallons in 2025.<\/p>\n<p>The EPA is now considering a range of 5.2 to 5.6 billion gallons for bio-based diesel in 2026, the sources told Reuters.<\/p>\n<p>The potential downward adjustment is partially related to the EPA&#8217;s plan to ditch a proposal that would slash the value of renewable fuel credits given by the U.S. government for imported biofuels, an &#8220;America First&#8221; policy hailed as a victory by the soybean and biodiesel industries.<\/p>\n<p>Big Oil, led by the influential American Petroleum Institute industry group, had argued that limiting credits for foreign supply could constrain availability and push fuel prices higher &#8211; an outcome the White House is eager to avoid as affordability remains a central political concern heading into midterm elections this year.<\/p>\n<p>Reuters <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/sustainability\/climate-energy\/trump-administration-may-delay-biofuel-import-credit-cuts-refiners-balk-2025-11-19\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">previously reported<\/a> that the EPA was considering delaying the proposal for at least a year.<\/p>\n<p>Benchmark Chicago Board of Trade soybean futures jumped 1.3% after the news and soyoil , a key feedstock for biofuels, rallied around 3.5% to a four-month high.<\/p>\n<p>&#8220;This administration has put a priority on petroleum and I think there was a little concern that green energy might be left behind. Based on this story, that&#8217;s not the case,&#8221; said Craig Turner, a grain broker at StoneX.<\/p>\n<p>The EPA told Reuters the agency is still reviewing comments on the proposed rule. &#8220;As publicly stated in court filings, the agency aims to finalize in the first quarter of 2026,&#8221; the agency said.<\/p>\n<p>The EPA is also expected to decide whether to require larger refiners to make up for gallons exempted under the agency&#8217;s small refinery waiver program, a determination that could significantly affect overall biofuel blending quotas.<\/p>\n<p>The EPA in August cleared a backlog of more than 170 small refinery exemption requests dating back to 2016. It has issued additional exemptions since then.<\/p>\n<p>The biofuel industry and its legislative allies have been urging the administration to require refiners to offset 100% of those exempted gallons, while the oil industry is resisting the obligations. The EPA has sought comment on <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/sustainability\/climate-energy\/us-epa-keeps-all-options-open-biofuel-reallocation-proposal-2025-09-16\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">various proposals<\/a>, ranging from zero reallocation to 100%.Reuters <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/sustainability\/climate-energy\/us-biofuel-plan-would-reallocate-half-or-less-waived-blending-quotas-sources-say-2025-09-10\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">previously reported<\/a> that the EPA is considering a plan for refiners to offset 50% of those exempted gallons.<\/p>\n<p data-testid=\"SignOff\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__extra_small__8Buss body-module__full_width__kCIGb body-module__extra_small_body__Bfz20 sign-off-module__text__LQAMP\">Reporting By Jarrett Renshaw; additional reporting Karl Plume; Editing by Chizu Nomiyama<\/p>\n<p data-testid=\"Body\" dir=\"ltr\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf article-body-module__element__5eCce article-body-module__trust-badge__5mS3f\">Our Standards: <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.thomsonreuters.com\/en\/about-us\/trust-principles.html\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__medium__2Rl30 text-module__small__sph8i link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">The Thomson Reuters Trust Principles., opens new tab<\/a><\/p>\n<p><a href=\"https:\/\/www.reutersagency.com\/en\/licensereuterscontent\/?utm_medium=rcom-article-media&amp;utm_campaign=rcom-rcp-lead\" target=\"_blank\" dir=\"ltr\" class=\"button-module__link__A3sD0 button-module__secondary__70gBu button-module__round__QDFgq button-module__w_auto__Sem-F\" data-testid=\"LicenceContentButton\" rel=\"nofollow noopener\">Purchase Licensing Rights<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Trump administration to finalize 2026 biofuel quotas by early March EPA may adjust bio-based diesel targets slightly lower&hellip;\n","protected":false},"author":2,"featured_media":286128,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[269],"tags":[82566,82519,85421,83369,83625,1802,117365,82559,82781,83404,82580,82531,82711,83620,18,83599,7520,83600,83601,83371,82571,440,85420,125903,95606,45748,67927,19,17,721,109888,82524,82507,45751,83403,83402,83602,104510,82508,1540,83376,82964,91564,91565,83623,91557,83621,82558,83606,83616,82756,133,93537,15170,82534,83368,83617,82563,83366,82564,83367,82533,107,83127],"class_list":{"0":"post-286127","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-environment","8":"tag-agri","9":"tag-amers","10":"tag-anlins","11":"tag-awlq","12":"tag-biof","13":"tag-com","14":"tag-cor","15":"tag-destlita","16":"tag-destoenr","17":"tag-destopub","18":"tag-destortagm","19":"tag-destousbsm","20":"tag-destousesg","21":"tag-destousnrg","22":"tag-eire","23":"tag-ener","24":"tag-energy","25":"tag-enff","26":"tag-eng","27":"tag-enr","28":"tag-env","29":"tag-environment","30":"tag-erep","31":"tag-ethful","32":"tag-exclsv","33":"tag-gen","34":"tag-gra","35":"tag-ie","36":"tag-ireland","37":"tag-legal","38":"tag-mog","39":"tag-namer","40":"tag-news1","41":"tag-nrg","42":"tag-nrlpaoenr","43":"tag-nrlpaopub","44":"tag-oilg","45":"tag-oils","46":"tag-pol","47":"tag-potus","48":"tag-prod","49":"tag-regs","50":"tag-rene","51":"tag-renf","52":"tag-repifuel","53":"tag-repirenewable-fuels","54":"tag-repitransport-fuels","55":"tag-reuters-legal","56":"tag-rnw","57":"tag-rsbiclean-energy","58":"tag-rsbiclimate-change","59":"tag-science","60":"tag-soil","61":"tag-sustainable-business","62":"tag-topcmb","63":"tag-topicenergy-oil-gas","64":"tag-topicenergy-transition","65":"tag-topicmarkets-commodities-agriculture","66":"tag-topicmarkets-commodities-energy","67":"tag-topicreuters-impact-top-stories","68":"tag-topicsustasinability-the-switch","69":"tag-topnws","70":"tag-us","71":"tag-wash"},"share_on_mastodon":{"url":"","error":"Validation failed: Text character limit of 500 exceeded"},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/286127","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=286127"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/286127\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/286128"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=286127"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=286127"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=286127"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}