Dec 16 (Reuters) - The U.S. Environmental Protection Agency expects to finalize 2026 and 2027 biofuel blending mandates, which had originally been expected in late October, in the first quarter of next
year.
The slowdown pushes one of the Trump administration's most consequential energy policy choices into 2026. Without clarity on quotas, companies say they are forced to hold back on deals and delay spending decisions that shape output and margins.
Reuters reported earlier this week the decision would likely spill into next year, citing sources familiar with the matter.
Fuel makers, farmers and commodity traders need the rule to lock in supply contracts, hedge volatile crop and energy markets, and justify investments in new production capacity.
The mandates are set under the Renewable Fuel Standard, a law that requires billions of gallons of ethanol and other biofuels to be blended into the U.S. fuel pool each year .
The EPA said it expects to issue a final rule during the first quarter of 2026 after consultations with the White House Office of Management and Budget, a notice filed with the U.S Court of Appeals for the D.C. Circuit on December 15 showed.
A proposed rule issued earlier this year would have raised total renewable fuel requirements, significantly increasing targets for advanced biofuels and biomass-based diesel while also tightening rules on the use of imported biofuels.
Rival oil and biofuel interests have clashed over the details. Refiners want lower mandates with easier access to imports to lower costs, while biofuel producers advocate for larger blending volumes focused on domestic supply.
(Reporting by Jarrett Renshaw; Writing by Richard Valdmanis; Editing by Alexander Smith)
