Biofuels industry awaits EPA’s final blending rule

The biofuels industry is awaiting the U.S. EPA’s final rule for blending requirements for 2026 and 2027.

The U.S. EPA has proposed setting 2026 biomass-based diesel blending requirements at 5.6 billion gallons and 2027 volumes at 5.86 billion gallons. Kurt Kovarik with Clean Fuels Alliance America says it’s a significant increase from previous years and more than the biofuels industry requested.

“Which is unbelievable and outstanding,” he says. “If we are in that neighborhood, I think we’ll see immediate reaction in the commodity price and margin opportunity for a biodiesel producer.”

Blending requirements were expected to be finalized by the end of November, but there have been delays due to technical and legal issues, along with a government shutdown.

The EPA tells Brownfield it still plans to finalize its 2026/2027 blending requirements in the first quarter of the year. Kovarik says he was hoping for news by now, but “I think we’re extremely close.”

Hear the interview with Kovarik.