The US Environmental Protection Agency (EPA) acknowledged last week that it might not finalize new biofuel blend mandates this year, a substantial delay that could put at risk officials' goals to swiftly reshape the program to boost domestic industry.
President Donald Trump's administration has signaled all year that it wants to get the frequently delayed biofuel program back on the schedule required by law, including by finalizing new quotas for the next two years before November. But EPA has also floated major program changes like cutting program credits for foreign imports and hiking obligations on large refiners to compensate for exemptions for their smaller competitors.
EPA acknowledged in a filing to the US Court for the District of Columbia late last week that these changes were affecting its timeline. The agency said it expects to finalize new biofuel quotas "this winter 2025-2026", noting that it has to take comment through October on last week's proposal to force large oil refiners to blend more biofuels to offset exemptions and then consult with other federal agencies on its final biofuel plan.
Under the Renewable Fuel Standard, EPA requires oil refiners and importers to annually blend different types of biofuels or buy credits from those that do. Program decisions influence not just the profitability of producing biofuels like ethanol, renewable diesel, and biogas but also crop demand and retail fuel prices.
Biofuel groups, used to delays, had already asked the DC court to force the agency to finalize new biofuel mandates more quickly. Growth Energy and Clean Fuels Alliance America, which back ethanol and biomass-based diesel companies, respectively, told the court they want EPA to agree to finalize the rule at least before the end of the year. The agency for now maintains that the groups missed some technical requirements for being able to sue but has negotiated settlements over program delays before.
EPA already proposed record-high quotas for 2026 and 2027. But the biofuel groups worry whether EPA will follow through, telling the court that the agency's "current trajectory creates a risk that it will finalize lower 2026 standards than proposed because of the delay in issuing the final standards".
Indeed, EPA has been more cautious in the past when finalizing fully or partly retroactive mandates since oil refiners have less notice about how many gallons of biofuel to bring to market.
Judge Timothy Kelly ordered biofuel groups and EPA to file a new status report in the case, which could include an updated timeline for finalizing the regulation, by 7 November.
EPA's lengthier timeline is another headache for biofuel producers, many of which have run their facilities less this year because of policy uncertainty, as well as farmers struggling with low crop prices. Oil refiners say they need clarity too, warning that currently proposed policies are costly to follow and could lead to higher fuel prices.
EPA's new timing goal also could put at risk biofuel quotas for 2028, which are due before November next year. The Clean Air Act requires the agency to finalize new mandates 14 months in advance of the year.
