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US Finalizes Higher Biofuels Quota to Boost Domestic Demand
Rule Requires Refiners to Mix a Record25.82 Billion Gallonsof Biofuels Into Conventional Diesel and Gasoline
The Trump administration unveiled long-awaited biofuels blending standards, imposing a stronger mandate than a plan proposed last year in a further show of support for producers and American farmers.
The rule requires refiners to mix a record25.82 billion gallonsof biofuels into conventional diesel and gasoline this year, almost 8% higher than was advertised lastJune, the Environmental Protection Agency said.
Both the oil and agriculture sectors have been anxiously awaiting President Donald Trump’s administration’s finalization of the quotas. Biofuels are seen as key to lifting incomes for farmers struggling with low crop prices and high input costs. Continued deferral of a decision had weighed on demand for the fuel, with crop trader Archer-Daniels-Midland Co. saying last month that the timing of “policy clarity” would largely determine its outlook for 2026.
The war with Iran has boosted calls for increased biofuels use. Advocates say that amid gasoline price spikes, blending more biofuels can help temper costs at the pump. Some small and midsized refiners, however, caution that blending biofuels is a big expense for them and it would increase their costs to produce. And analysts have said that energy prices are unlikely to meaningfully subside until the end of the effective closure of the Strait of Hormuz, acrucial waterwayfor shipments.
Speaking at a White House event March 27 to mark National Agriculture Day, Trump called the move a “dramatic update to the renewable fuel standards.”
“These new standards will generate over $10 billion of rural economic benefit, create an estimated 100,000 new jobs and massively increase our nation’s energy supply,” Trump said.
| Finalized Renewable Fuel Quotas | 2026 | 2027 |
|---|---|---|
| Cellulosic biofuel | 1.36 | 1.43 |
| Biomass-based diesel | 8.86 | 8.95 |
| Advanced biofuel | 10.82 | 10.98 |
| Total renewable fuel | 25.82 | 25.98 |
Source: EPA
Shares of biofuel producers and crop traders climbed on the news. ADM jumped as much as 2.6%, Bunge Global SA added as much as 4.6% and Green Plains Inc. rose as much as 8.7%.
ADM ranks No. 77 on theTransport Topics Top 100 list of the largest private carriersin North America and No. 11 on theagriculture sector list.
It’s still unknown whether and how the administration will grant more small refineries’ bids to be exempted fromquotasfor last year. But the issue has created a rift within the oil industry. Large refiners want fewer exemptions to be granted because they have to bare the cost, while small and medium refiners want the exemption process to remain the same.
Under the EPA’s proposal, 70% of exempted volumes would be reallocated to those who didn’t win the breaks.
Hosting Farmers
At the White House, Trump hosted farmers and executives from agriculture companies. The administration has been focusing on farmers — a key voting block that has generally supported Trump — to help alleviate pressures from the president’s tariff policies and attacks on Iran. Trump in December announced a$12 billion aid packagefor struggling farmers.
I just signed and announced a nationwide E15 and E10 fuel waiver to fortify U.S. fuel supply. This waiver ensures a robustly available supply of domestic fuel, providing Americans further relief at the pumps, and reducing our reliance on foreign oil. This means lower energy costs… — Lee Zeldin (@epaleezeldin)
In a further effort to bolster corn farmers and biofuels producers, the EPAsaidMarch 25 it will waive higher-ethanol E15 gasoline from U.S. volatility requirements this summer. The move will allow for expanding sales, giving drivers more options and delivering a bigger domestic market for farmers. Ethanol producers and some fuel refiners have been pushing for more permanent change, seeking year-round sales of E15, but legislation efforts have repeatedly stalled.
At the event on March 27, Trump said he’s seeking congressional action to allow E15 fuel waivers all year round.
In a separate move to aid farmers, Trump also confirmed that the Small Business Administration will launch a “massive” new loan guarantees program for farmers and food suppliers. Guarantees will be available for vegetable, grain, seed farmers, cattle, pig and poultry producers, and grocery wholesalers, he said.
