United States Environmental Protection Agency logo and U.S. flag are seen in this illustration taken April 23, 2025.
Zeldin, speaking at a congressional hearing, stated: “None of these were getting approved at all in the last administration. We want to get caught up as quickly as we can.” The RFS mandates that refiners blend biofuels, such as corn-based ethanol, into the nation’s fuel supply or purchase renewable fuel credits (RINs) from those who do. Small refiners may request exemptions by demonstrating financial hardship.
The EPA’s forthcoming decisions will influence the biofuel credit market and small refinery operations. During the first Trump administration, the EPA increased exemption approvals, which lowered RIN prices and drew criticism from Midwest agricultural stakeholders who argued it undermined investments in the biofuel sector. The Biden administration, by contrast, delayed action on these applications, leading to the current backlog.
On the same day, the EPA submitted a proposed rule to the White House outlining biofuel blending volumes for 2026, with expectations that it will also cover 2027. This proposal will signal the administration’s approach to balancing the interests of the oil and biofuel industries. A coalition of oil and biofuel groups recently suggested a federal mandate of 5.25 billion gallons for biomass-based diesel blending in 2026, a notable increase from prior levels.
Market reactions followed rumors that the EPA might propose a lower volume of 4.65 billion gallons for biomass-based diesel in 2026, causing soybean oil futures on the Chicago Board of Trade to drop over 5% on Thursday. This figure remains unconfirmed. The EPA’s previous rules set total biofuel volumes at 20.94 billion gallons for 2023, 21.54 billion gallons for 2024, and 22.33 billion gallons for 2025.
The EPA’s actions on exemptions and blending mandates are expected to shape the renewable fuel landscape, affecting refiners, biofuel producers, and agricultural markets. Zeldin’s commitment to resolving the exemption backlog reflects an effort to provide clarity and stability for small refineries while navigating the broader dynamics of the U.S. energy sector.
