A rare coalition of oil and biofuel interests met with the Environmental Protection Agency (EPA) on Tuesday to push for significantly higher Renewable Volume Obligations (RVOs) for biomass-based biodiesel and conventional ethanol under the Renewable Fuel Standard (RFS), Reuters reports.
The group advocated for a biomass-based biodiesel mandate of 5.5 to 5.7 billion gallons, up sharply from the 3.35 billion gallons set for 2025, according to documents reviewed by Reuters. For conventional ethanol, the group urged maintaining the 15-billion-gallon threshold, although some lobbied for a modest bump to 15.25 billion gallons.
However, internal divisions emerged. The Fueling American Jobs Coalition, which represents smaller independent refiners, opposed the biodiesel hike. Meanwhile, truck stops and fuel retailers boycotted the meeting altogether, demanding the restoration of the $1-per-gallon blender tax credit that expired at the end of 2024. They argue the current substitute — the Clean Fuel Production Credit (45Z) — lacks clarity and fails to stabilize fuel prices.
The coalition’s direct engagement with the EPA is seen as a key escalation, following a previous round of internal talks encouraged by the administration. EPA is expected to announce its proposed RFS levels for 2026 and possibly 2027 soon. While the agency missed its October 2024 deadline for 2026, finalizing both years by December would align more closely with the legal requirement of setting levels 14 months in advance.
What’s next: Watch for a formal EPA proposal possibly within weeks — a move that could shape the U.S. fuel mix well into the next presidential term.
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