The potential delay would be welcomed by domestic oil refiners that have invested in the bio-based diesel sector, but risks angering US farmers and biofuel producers who rely on the current credit system.
The proposal, introduced earlier this year as part of President Donald Trump’s “America First” energy strategy, aims to bolster domestic production and reduce reliance on imported fuels. It centres on reducing the value of renewable fuel credits awarded by the US government for imported biofuels, with the original plan scheduled to come into force on 1 January.
However, the Environmental Protection Agency (EPA) is now considering postponing implementation until 2027 or 2028, the sources told Reuters, speaking on condition of anonymity. The EPA said it is reviewing public comments ahead of releasing final rules in the coming months, but declined to comment on the possibility of a delay. The White House has not responded to requests for comment.
Major oil interests, led by the influential American Petroleum Institute, argue that limiting credits for imported supply could reduce availability and drive up fuel prices—an outcome the administration is keen to avoid as affordability remains a key political issue ahead of next year’s congressional elections.
Under the proposed cuts, imported biofuels and feedstocks would receive just half as many tradable renewable fuel credits as domestic equivalents. This would have considerable implications for bio-based diesel, which relies heavily on imports to meet federal blending mandates.
The decision forms part of a series of regulatory actions the fuel industry is monitoring closely. Other pending decisions include finalising 2026 biofuel blending requirements, determining whether to permit year-round sales of E15 petrol, and assessing whether larger refiners should compensate for volumes exempted under the small refinery waiver scheme.
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