BOGO Carry (Contango) Defies Feedstock Fundamentals

BBB passes House

The passage of the Big Beautiful Bill (BBB) through the House marks a pivotal moment in U.S. biofuels policy. Expected to be signed into law by President Trump on July 5th, the legislation now hands implementation responsibility squarely to the EPA. Industry stakeholders are reminded that the public consultation period on the RVOs—and particularly the proposed RIN reduction for foreign producers—remains open until August 8. Yet despite this legislative clarity, D4 RINs continue to show minimal response, with the December 2025 contract closing at 1.192, down modestly. The market appears to be waiting for concrete implementation details before re-pricing the fundamentals.