A U.S. coalition of oil and biofuel groups met with the Environmental Protection Agency (EPA) on Tuesday to advocate for increased biomass diesel blending mandates under the Renewable Fuel Standard (RFS), amid growing internal disagreements over the economic and political fallout of higher quotas. The EPA is expected to propose updated RFS targets for 2025–2026 as early as this month, marking a critical test of President Donald Trump’s pledge to support biofuels while balancing energy sector demands.
Key Developments:
Coalition Proposal: The alliance, led by the American Petroleum Institute (API), seeks to raise biomass diesel mandates to 5.5–5.75 billion gallons (up from 3.35 billion) and maintain corn-based ethanol at 15 billion gallons.
Industry Opposition: Smaller refiners, represented by the Fueling American Jobs Coalition, warned that aggressive targets threaten jobs in key states like Pennsylvania and Ohio, while fuel retailers boycotted the meeting, demanding restoration of the expired blenders tax credit to offset consumer costs.
EPA’s Challenge: The agency must reconcile competing priorities: boosting biofuels to meet climate goals versus addressing concerns over inflation, manufacturing jobs, and fuel prices.
Divisions Highlighted:
Refiner Concerns: Higher mandates could strain refiners already grappling with compliance costs, risking union job losses and higher pump prices.
Retailer Boycott: Truck stop operators argue the new 45Z producer tax credit fails to replace the lapsed blenders credit, leaving consumers vulnerable to price hikes.
Broader Context:
The RFS overhaul aims to align with Trump’s energy agenda, but internal fractures underscore the difficulty of uniting traditionally rival sectors. The outcome could shape U.S. biofuels policy ahead of the 2024 election.