Major US industry group makes surprising recommendation that could bring big changes to gas pumps: 'Strong, steady volumes'

According to Reuters, a coalition led by the American Petroleum Institute recommended that the Environmental Protection Agency mandate 5.25 billion gallons of biofuel be blended with America's diesel fuel in 2026.

This is a big step up from the current mandate of 3.35 billion gallons for 2025.

While biofuel and petroleum producers have traditionally been competitors, this joint messaging could signal a new level of cooperation.

Most gasoline in America already includes the biofuel ethanol. Ethanol burns about 52% more cleanly than gasoline. So, increasing its proportion would reduce atmospheric pollution caused by operating gas vehicles. Some startups are even trying to deploy ethanol in trucking and aviation.

There are concerns that there will be land use costs to increasing biofuel production.

Biofuel is mostly made with corn biomass in the United States. Cutting down forests and other wilderness to grow that corn would need to factor into ethanol's eco-friendliness. Some experts even argue that growing crops for biofuel threatens food security.

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Lawmakers will be upholding a regulation that allows for the sale of gasoline with higher ethanol content across eight states year-round. This was made possible with bipartisan support, so it's likely that the EPA is receptive to the API's proposals.

The move from the API to get the EPA to increase biofuel mandates doesn't come from nowhere. An open letter addressed to the EPA a few months ago was pursuing the same goal.

"As the EPA begins work on policies that promote American energy and renewable fuels, we encourage the EPA to consider robust future renewable fuel volumes for 2026 and beyond," the coalition wrote.

"We believe strong, steady volumes for conventional biofuel targets, biomass-based diesel, and advanced fuels would more accurately reflect the availability and ongoing investments in feedstocks and production capacity," it added.