The Environmental Protection Agency has sent a proposed rule setting the amount of biofuels that oil refiners must blend into their fuel starting next year. Reuters says the White House must sign off on the proposal from the EPA.
The oil and biofuel lobbies have been waiting for this proposal since President Donald Trump took office in January. The past dynamic of big oil versus biofuels has changed in recent years as a coalition of oil and biofuel groups recommended the EPA propose federal mandates for biomass-based diesel blending at 5.25 billion gallons. That figure would be a significant increase from past mandates.
Soybean oil futures dropped on Thursday due to rumors that the EPA’s proposed rule would set biomass-based diesel blending for 2026 at 4.65 billion gallons, but Reuters was unable to confirm that figure.
The EPA is expected to propose a new rule that covers both 2026 and 2027.
