US environmental regulators cut two ways to meet biofuel mandates

The US Environmental Protection Agency is changing how companies can meet renewable fuel targets for 2026 and 2027. It is lowering the amount of biofuel made from plants that companies must use, and it is removing renewable electricity as a way to count towards these goals.

For years, companies could generate credits for renewable electricity used in electric vehicles, counting it towards their biofuel mandates. This rule change removes that option, making it harder to meet targets without using actual liquid biofuels. It also signals that the government is adjusting its expectations for how much advanced biofuel the market can realistically produce.