President Trump’s push to limit foreign feedstocks in U.S. biodiesel production may backfire, raising fuel prices and hurting domestic output, according to leading biofuel and refining groups.
At the heart of the controversy is a June EPA proposal to halve the number of renewable fuel credits (RINs) granted for biodiesel made from imported or foreign-sourced materials. The move is intended to bolster local production under Trump’s “America First” trade stance — but industry players argue it risks doing the opposite.
Under the Renewable Fuel Standard, refiners must blend biofuels like biodiesel into the U.S. fuel supply or purchase RINs to comply. Limiting RINs for foreign feedstocks like used cooking oil and animal fat could sharply increase demand for domestic supplies — which are already in short supply.
Chet Thompson, head of the American Fuel and Petrochemical Manufacturers, said the proposed changes would raise compliance costs and strain the biofuel market, ultimately passing higher costs onto consumers. Meanwhile, a study commissioned by the Advanced Biofuels Association estimates the policy could add $250 per metric ton to domestic feedstock prices.
The EPA is accepting public comments on the proposal through August 8, while the White House declined to address cost concerns directly.