Industry Leaders Push for Higher Mandates under RFS Volumes
Oil and biofuel industry groups recently met at the American Petroleum Institute to align their positions ahead of the Environmental Protection Agency's (EPA) Renewable Fuel Standard (RFS) policy update. This meeting included stakeholders from feedstock suppliers, marketers, and fuel producers.
They are working to push for stronger blend mandates, especially under the D4 biomass-based diesel and D5 advanced biofuel categories. While individual volume targets vary, one lobbyist said they are all “in a rounding number of each other.”
There’s debate over how fast the mandate should grow. Farm groups want the biomass-based diesel mandate raised to at least 5.25 billion gallons by 2026, which could raise the advanced biofuel category above 9 billion gallons. However, some stakeholders fear this rapid rise could increase fuel prices.
The current 2025 mandate includes 7.33 billion gallons of advanced biofuels and 3.35 billion for biomass-based diesel. The group also addressed tax credits and refinery exemptions but avoided deep conflicts.
Discussions excluded D3 cellulosic biofuels and the proposed eRINs category for electric vehicles. “We’re not expecting to see any attempt to include eRINs in this next [RFS] proposal,” said Renewable Fuels Association president Geoff Cooper.
RIN prices rose with the speculation of higher mandates. D6 ethanol credits reached 82¢, while D4 diesel credits closed between 84¢ and 89¢. The market’s positive movement reflects growing hope for stronger renewable fuel policies.