WASHINGTON, D.C. (RFD NEWS) — The U.S. Environmental Protection Agency (EPA) has finalized new Renewable Fuel Standard (RFS) volume requirements for 2026 and 2027, setting what officials call the highest levels in the program’s history. Announced during the White House “Celebration of Agriculture” event with farmers and biofuel stakeholders on Friday, the “Set 2” rule aims to expand the use of American-made biofuels, strengthen energy independence, and support rural economies.
EPA Administrator Lee Zeldin said the rule delivers on the administration’s commitment to agriculture and domestic energy production.
“President Trump promised a Golden Age of American agriculture. Once again, his administration is delivering. Overall, ‘Set 2’ creates a larger, more stable, and more reliable domestic market for U.S. crops, strengthening farm income and rural economies,” Zeldin said. “For 20 years, this program has diversified our nation’s energy supply and advanced American energy independence. EPA is proud to deliver on this mission and to do so at historic levels.”
The rule maintains 15 billion gallons of conventional biofuels, including corn ethanol, for both 2026 and 2027. It also increases advanced biofuel targets, driving additional demand for feedstocks like soybean oil used in biodiesel and renewable diesel.
USDA Secretary Brooke Rollins said the new standards could significantly benefit farmers.
“Today’s announcement is truly historic for our nation’s farmers and energy producers. These numbers represent the highest levels of biofuels ever required to be blended into our fuel supply,” Rollins said. “With President Trump and Administrator Zeldin’s leadership, these historically high volumes are expected to create a $3 to $4 billion dollar increase in net farm income. The Renewable Fuel Standard Set 2 Rule will create a $31 billion dollar value for American corn and soybean oil for biofuel production in 2026, which is $2 billion more than in 2025. Our farmers are stepping up to grow American energy dominance.”
EPA estimates the rule could generate more than $10 billion for rural economies and support over 100,000 jobs across agriculture and manufacturing sectors.
To meet the new targets, biodiesel and renewable diesel production is expected to increase by more than 60 percent compared to 2025 levels, boosting demand for U.S. soybean producers.
The agency also finalized a 70 percent reallocation of renewable fuel volumes lost to small refinery exemptions (SREs) issued between 2023 and 2025, aiming to restore demand while maintaining market stability.
In a notable policy shift, EPA announced that beginning in 2028, foreign fuels and feedstocks will receive only half the compliance value under the RFS compared to U.S.-produced inputs—an effort to prioritize domestic production.
Additionally, the agency removed “renewable electricity” from the RFS program, stating the move aligns the rule more closely with the Clean Air Act and its original focus on liquid and gaseous fuels.
Officials say the updated standards will reduce U.S. reliance on foreign oil by an estimated 300,000 barrels per day over 2026 and 2027, while providing long-term certainty for farmers, biofuel producers, and fuel markets.
Biofuel Groups Praise EPA’s Long-Awaited Renewable Fuel Standard Volumes for 2026-2027
The Renewable Fuels Association is welcoming the release of the final Renewable Fuel Standard (RFS) volume obligations for 2026 and 2027, calling the move a win for farmers, ethanol producers, and consumers.
According to RFA, the updated rule from the U.S. Environmental Protection Agency supports continued growth in American-made renewable fuels like ethanol while providing stability and certainty across the fuel marketplace.
“At a time when American consumers are looking for relief at the pump and hard-hit farmers are looking for new demand opportunities, we commend EPA Administrator Lee Zeldin and President Donald Trump for delivering robust RFS volume requirements for 2026 and 2027,” said RFA President and CEO Geoff Cooper. “The final rule locks in the highest-ever renewable fuel volume obligations and provides clarity for farmers, ethanol producers, oil refiners, and fuel distributors alike. Today’s action by EPA and the White House will boost the farm economy, strengthen American energy security, and reduce fuel prices for hardworking families. We applaud the Trump administration for recognizing the important role renewable fuels and agriculture can play in meeting our nation’s energy dominance objectives.”
Under the final rule, EPA requires 15 billion gallons of conventional renewable fuels—such as corn ethanol—for both 2026 and 2027. The rule also sets advanced biofuel requirements at 10.82 billion Renewable Identification Numbers (RINs) in 2026, increasing to 10.98 billion in 2027.
In addition, EPA will reallocate 70 percent of renewable fuel volumes lost to small refinery exemptions (SREs) issued between 2023 and 2025, restoring approximately 2.03 billion gallons of previously lost demand.
While RFA praised the overall rule, the group noted it falls short of fully restoring all waived volumes.
“We continue to believe small refinery exemptions are completely unjustified, and the SRE petition process—including EPA’s reliance on the Department of Energy’s ‘scoring matrix’—is fundamentally flawed,” Cooper said. “SREs distort the market, undermine fair competition, and destabilize the RFS program. And while RFA appreciates EPA’s efforts to minimize market disruptions by reallocating most of the renewable volume lost to SREs, we believe the Agency has a duty to fully restore all exempted volumes.”
RFA added that although it had pushed for full reallocation, the 70 percent level included in the final rule is stronger than other options previously under consideration.
The organization says the updated RFS volumes will help drive demand for renewable fuels, support corn growers, and reinforce the role of biofuels in the nation’s energy strategy.
