Washington, D.C. – November 19, 2025 – The Trump administration is considering delaying proposed reductions in biofuel import credits by one or two years, sources familiar with the matter told Reuters on Tuesday. The move comes amid pressure from U.S. refiners, who warn that cutting incentives for imported biofuels could raise fuel costs and tighten supply in the domestic market.

The proposed delay would likely please domestic oil refiners, who have invested heavily in the bio-based diesel sector, but could frustrate U.S. farmers and biofuel producers reliant on export markets for renewable fuel credits. No final decision has been made, the sources said.

Background on Biofuel Import Credit Proposal

Earlier this year, the Environmental Protection Agency (EPA) proposed slashing the value of renewable fuel credits (RINs) for imported biofuels as part of President Trump’s “America First” energy agenda. The plan aims to boost domestic biofuel production and reduce reliance on foreign supply. The cuts were initially set to take effect on January 1, 2026.

Under the proposal, imported biofuels and biofuel feedstocks would receive only half as many tradable renewable fuel credits as their domestic counterparts. The change has significant implications for bio-based diesel, which depends on imports to meet federal mandates.

Industry Concerns

Big Oil, led by the American Petroleum Institute (API), warned that reducing credits for imports could limit fuel availability and drive prices higher—an outcome the White House is keen to avoid ahead of next year’s congressional elections.

EPA officials are currently reviewing public comments and have not confirmed whether a delay will occur. Other regulatory decisions under consideration by the administration include:

• Finalizing 2026 biofuel blending mandates
• Determining whether to allow year-round sales of E15 gasoline (15% ethanol blend)
• Deciding how to manage small refinery exemptions

Political and Market Implications

The delay in deciding biofuel import credit cuts is also influenced by a protracted U.S. government shutdown and a backlog of small refiner exemption requests. Analysts say these regulatory uncertainties could impact both domestic fuel prices and biofuel market dynamics, particularly in the renewable diesel sector.

By potentially postponing implementation to 2027 or 2028, the administration aims to balance support for domestic refiners with maintaining political and economic stability.