(Clean Fuels Alliance America) Today, Clean Fuels Alliance America thanked the Environmental Protection Agency for finalizing robust biomass-based diesel volumes in the 2026-27 Renewable Fuel Standard rule. The RFS rule provides much-needed certainty to biodiesel and renewable diesel producers and other stakeholders in the clean fuel value chain, including farmers, feedstock providers, and oilseed processors.
Kurt Kovarik, Clean Fuels’ Vice President of Federal Affairs, stated, “The entire U.S. clean fuel industry – from farmers and feedstock providers to fuel customers – is grateful to see this rule finalized. U.S. biodiesel, renewable diesel, and SAF producers are eager to get to work and bring the 7 billion gallons of existing production capacity up to speed to meet 10% or more of America’s demand for diesel fuel.”
In 2025, biodiesel and renewable diesel facilities were forced to shut down or run far below prior-year production levels due to market uncertainty. U.S. biodiesel production declined by one-third in 2025, compared to 2024.
Kovarik continued, “The robust biomass-based diesel volumes set in this rule support America’s farmers and consumers. Biodiesel and renewable diesel represent 10% of the value of every bushel of U.S.-grown soybeans, contributing to President Trump’s desire for American energy dominance and domestic market demand for agriculture commodities. American farmers and other feedstock providers are eager for the growing domestic clean fuel market to drive value in agriculture, along with economic growth and job creation in rural communities. American consumers are desperate for secure, affordable domestic energy. Today’s rule is a clear win for the nation’s energy security.”
Last year, Clean Fuels coordinated with all industry stakeholders to advocate a robust RFS biomass-based diesel volume of at least 5.25 billion gallons for 2026. EPA delivered effective volumes of 8.86 billion RINs for 2026 and 8.95 billion RINs for 2027.
EPA is setting supplemental volumes to account for the economic harm that small refinery exemptions inflict on U.S. farmers, oilseed processors, and the biomass-based diesel industry: 210 million RINs in 2026 and 250 million RINs in 2027. EPA’s rule also contains a mechanism to account for projected small refinery exemptions in 2026 and 2027; this will ensure that the required volumes set today are met over the next two years.
ABOUT CLEAN FUELS ALLIANCE AMERICA
Made from an increasingly diverse mix of resources such as recycled cooking oil, soybean oil, and animal fats, the clean fuels industry is a proven, integral part of America’s clean energy future. Clean Fuels Alliance America is the U.S. trade association representing the entire biodiesel, renewable diesel and sustainable aviation fuel supply chain, including producers, feedstock suppliers and fuel distributors. Clean Fuels receives funding from a broad mix of private companies and associations, including the United Soybean Board and state checkoff organizations. READ MORE
Related articles
- RFA Welcomes 2026-27 RFS Volume Obligations (Renewable Fuels Association)
- Growth Energy Celebrates Historic RVOs and SRE Reallocation (Growth Energy)
- EPA Finalizes Historic New Renewable Fuel Standards to Strengthen American Energy Security, Support Rural Economies -- Rule sets balanced biofuels growth for 2026 and 2027, bolstering domestic oil and feedstock (U.S. Environmental Protection Agency)
- Promises in Bloom: The RVO Reset and springtime for the bioeconomy (Biofuels Digest)
- RFS Final Rule: All-Time High Volumes: EPA Finalizes RFS: Reallocates 70% of Gallons Waived by Refinery Exemptions (DTN Progressive Farmer)
- EPA seals record-high biofuel mandate for two years -- The agency said it’s boosting volumes through the renewable fuel standard, in a nod to farmers who grow crops for ethanol. (E&E News PM)
- EPA Hikes RFS Targets, Shifts Some Waived Volume To Larger Refiners (Inside EPA)
- US refining group says record biofuel quotas may worsen Iran war price spike (Reuters)
- Fuel retailers praise ambitious renewable volume obligations (Biofuels International)
- NOPA Applauds Trump Administration for Finalization of Historic 2026-2027 Renewable Volume Obligations (National Oilseed Processors Association)
- EPA’s Final RFS Set 2 Will “Strengthen American Energy Security, Support Rural Economies” (Bergeson & Campbell)
Excerpt from Renewable Fuels Association: The Renewable Fuels Association today welcomed the release of long-awaited final Renewable Fuel Standard volume obligations for 2026 and 2027. Today’s RFS rule supports continued growth in American-made renewable fuels like ethanol and brings much-needed certainty and stability to the marketplace, according to RFA.
“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.”
EPA’s final rule requires 15 billion gallons of conventional renewable fuels like corn ethanol in both 2026 and 2027. In addition, 10.82 advanced biofuels RINs are required in 2026, increasing to 10.98 billion RINs in 2027. EPA will also reallocate 70 percent of the renewable fuel volumes lost to small refinery exemptions (SREs) for 2023-2025, effectively restoring 2.03 billion gallons of previously lost demand.
RFA noted that by not fully reallocating the renewable fuel volumes lost to SREs issued for 2023-2025, today’s rule stops just short of providing farmers and ethanol producers the market expansion opportunity Congress envisioned in establishing the RFS program.
Cooper noted that while RFA advocated for full reallocation of the 2023-2025 SREs, the 70 percent reallocation included in today’s rule is better than other options that were under consideration. EPA had proposed 50 percent reallocation as an option and also solicited public feedback on no reallocation at all.
“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.” READ MORE
Excerpt from Growth Energy: Growth Energy, the nation’s largest biofuel trade association, applauded President Donald Trump, Environmental Protection Agency Administrator Lee Zeldin, and U.S. Department of Agriculture (USDA) Secretary Brooke Rollins for helping to deliver the largest renewable volume obligations (RVOs) in the nation’s history. Growth Energy also welcomed news that EPA would account for a number of small refinery exemptions (SREs) by reallocating 70% of those volumes.
“With this rulemaking, EPA and the administration are reinforcing their unwavering support for American-made biofuels and sending a strong signal about the continued role biofuels like ethanol will play in delivering American energy dominance and greater prosperity to the heartland,” said Growth Energy CEO Emily Skor. “We commend President Trump, EPA Administrator Zeldin, and USDA Secretary Rollins for working together to finalize this historic, growth-oriented proposal, which opens the market for more than 15 billion gallons of conventional biofuel in 2026 and 2027.
“USDA also deserves our industry’s thanks for its advocacy on behalf of American farmers—the agency worked tirelessly to ensure that the final RVOs reflected the President’s agenda for unleashing American energy and restoring prosperity to rural America. With so many farm families struggling to make ends meet, we must take every opportunity to build reliable, domestic markets for American agriculture.
“Furthermore, we applaud EPA for making the decision to reallocate 70% of all gallons lost to 2023-2025 SREs. This provides clarity and predictability across the liquid fuel supply chain, while guaranteeing that the new markets promised to American farmers and biofuel producers as part of the RVOs are not destroyed by costly exemptions.
“We are grateful to President Trump and his administration for its steadfast support for homegrown biofuels, and for setting a new high watermark for American ethanol. We look forward to continuing our work with EPA and Congressional champions as we continue to find ways to strengthen domestic energy security and open new market opportunities for U.S. farmers and rural communities.”
BACKGROUND
Under the RFS, EPA sets the number of gallons of renewable fuels (such as biofuels) that must be blended into the nation’s total fuel supply each year. Those renewable volume obligations (RVOs) apply to fuel producers (petroleum refiners) and importers, otherwise known as “obligated parties.” Each obligated party is required to blend a certain percentage of renewable fuels into the transportation fuel they produce or import to meet the nationwide RVO. The law also allows EPA to grant exemptions from RFS blending requirements to certain refiners (SREs) in rare circumstances when a refiner demonstrates “disproportionate economic hardship” in its efforts to comply with the RFS.
On June 13, 2025, EPA proposed RVOs for 2026-2027, proposing that refiners must blend at least 15 billion gallons of conventional biofuels (i.e., ethanol) into the nation’s fuel blend for each plan year. The RVO proposal—also called the Set 2—also included requirements to blend more than one billion gallons of cellulosic biofuel, more than seven billion gallons of biomass-based diesel, and more than nine billion gallons of advanced biofuel for each plan year. Altogether, EPA’s proposal would require the blending of more than 24 billion gallons of renewable fuel each year, making it the largest RVO proposal in the program’s history.
On August 22, 2025, EPA released its decisions on 175 pending SRE petitions, covering compliance years 2016-2024. In all, EPA granted a total of 140 petitions: 63 full exemptions and 77 partial (50%) exemptions.
At the time, EPA also announced that it would release a supplemental proposal to its proposed Set 2 RVO to reallocate exempt SRE gallons from 2023-2025 compliance years to the 2026 and 2027 compliance years covered by Set 2. Although it had not yet issued decisions on 2025 SRE petitions, EPA estimated upwards of 2.1 billion 2023-2025 RINs were potentially subject to reallocation. Under this approach, refiners would be required to make up for lost gallons from those years, ensuring that SREs don’t compromise renewable fuel demand.
EPA released the supplemental proposal on SRE reallocation on September 16, 2025. It indicated that the agency is considering accounting for “volumes representing complete (100 percent) reallocation and 50 percent reallocation for SREs granted in full or in part for 2023 and 2024, as well as those projected to be granted for 2025, as part of the ongoing RFS rulemaking.” Growth Energy provided substantive comment in response to EPA’s proposal.
In November 2025, EPA also issued decisions on 16 SRE petitions for the 2021 through 2024 RVO compliance years. EPA granted 2 full exemptions and 14 partial (50%) exemptions and denied 2 petitions. The November 2025 exemptions totaled 740 million RINs, 510 million of which were for the 2023 and 2024 RVO compliance years. READ MORE
Excerpt from U.S. Environmental Protection Agency: Today at the White House Great American Agriculture Celebration, President Trump announced that U.S. Environmental Protection Agency (EPA) has finalized the historic Renewable Fuel Standard (RFS) “Set 2” final rule. The final rule realigns the program with Congress’ original intent—increasing the use of homegrown American biofuels—putting American farmers first and promoting American energy independence. In the 20th year of the RFS program, “Set 2” establishes the renewable fuel volume requirements for 2026 and 2027 at the highest levels in program history. EPA’s final rule demonstrates the Trump administration’s ongoing commitment to America’s farmers and unleashing American energy by reducing America’s reliance on foreign oil, delivering long-term certainty and stability for America’s farmers and biofuel producers, and ultimately creating a path for rural economies to boom.
“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,” said EPA Administrator Lee Zeldin. “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.”
“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,” said U.S. Secretary of Agriculture Brooke L. Rollins. “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.”
Under Administrator Zeldin’s leadership, the agency has been working tirelessly to further America’s energy independence and future, and these new requirements are another major step in that direction.
To meet the historic 2026 and 2027 volume levels, EPA estimates that biodiesel and renewable diesel production and use will need to increase by over 60 percent compared to 2025 volumes, the last year of the Biden-Harris administration’s “Set 1”. This in particular will drive renewed demand for American soybean producers. With the benefits “Set 2” will bring to America’s farmers, EPA estimates that the rule will generate over $10 billion for rural economies and create over 100,000 new jobs in the agricultural and manufacturing sectors. To provide continued certainty for American corn growers and ethanol producers, EPA will maintain the 15 billion conventional biofuel level for 2026 and 2027.
2026 and 2027 Renewable Fuel Volume Requirements, SRE Reallocation Volumes, and Total Applicable Volumes (billion RINs)

A key pillar of EPA’s Powering the Great American Comeback initiative is restoring American energy dominance. The Trump administration has made great strides on this during President Trump’s first year back in office and EPA, under Administrator Zeldin’s leadership, is proud to continue to deliver for the American people. The priority “Set 2” places on expanding the use of American-made ethanol, biodiesel, and renewable diesel in the marketplace will reduce the nation’s dependence on foreign oil by roughly 300,000 barrels of oil per day over 2026 and 2027.
Additionally, the Trump EPA is restoring the RFS program to align with the plain language of the Clean Air Act (CAA). Despite “electricity” never once being mentioned in the RFS CAA language, the Obama and Biden administrations set up the framework to turn the RFS program into a subsidy for electric vehicle (EV) charging stations as part of their efforts to force the electrification of the transportation sector. This manipulation of the CAA was not about helping farmers but rather furthering their out-of-touch political agenda of pushing EVs on every American. The Trump EPA has removed “renewable electricity” from the RFS program; once again taking action to end the efforts to push EVs onto the American people. In accordance with the RFS CAA language, which mentions liquid or gaseous fuels over fifty times, EPA has worked across the Trump administration to finalize a “Set 2” that puts our farmers and America first.
Last year, EPA took action on the backlog of Biden-era small refinery exemption (SRE) petitions and in September 2025 issued a supplemental proposed rulemaking to account for SRE decisions. Today, after considering relevant comments, data, and analyses received, EPA is also finalizing a 70 percent partial reallocation of the 2023–2025 exempted Renewable Volume Obligations for the 2026 and 2027 compliance years. This approach will balance a number of factors that come into play when considering volume requirements and the impacts of SREs, including protecting biofuel demand while maintaining a stable and functioning credit market.
EPA is announcing that starting in 2028, foreign fuels and feedstocks will receive half the RFS compliance value compared to American-made products, providing American biofuel producers with time to prepare for the change while ensuring that American farmers benefit from the RFS program and American energy independence.
The “Set 2” rule supports President Trump’s broader economic vision of strengthening American energy independence, growing domestic agricultural markets, and fighting back against unfair trade practices. The final volume requirements for 2026 and 2027 will protect investments made by American corn and soybean growers, oilseed processors, and biodiesel and renewable diesel producers, whose products are critical to our country’s energy security and keeping rural economies strong.
Learn more information on the "Set 2" Final Rule. READ MORE
Excerpt from DTN Progressive Farmer: DTN Lead Analyst Rhett Montgomery said the RFS announcement did provide a boost to the soybean oil market on Friday.
"It really seems like a 'buy the rumor, sell the fact' type trade, but soybean oil has recovered to again be slightly higher currently," he said.
"Overall, I'd say the mandated volumes combined with a 70% reallocation of small-refinery exemptions is in line with what traders have been expecting the past few months, which has contributed to the almost 20-cent per-pound rally in soybean oil futures through 2026 thus far."
Montgomery said because the foreign feedstock requirement will not go into effect until 2028 it may "leave some traders anxious, especially considering the lost share of demand soybean oil has suffered compared to used cooking oil in recent years; but this will need to be monitored as it may at the end of the day be price dependent."
As for corn, he said the corn-ethanol mandate is a neutral development for the corn market at this point as "the ethanol industry remains a strong and steady corn demand source.
"I expect the ongoing push for year-round E15 will continue to be the demand story to watch in coming years as it pertains to expanding the ethanol industry," Montgomery said. READ MORE
Excerpt from Reuters: The rebuke from the U.S. refining industry revealed a rare public rift between President Donald Trump's White House and oil companies that have traditionally backed his efforts to bolster the fossil-fuel energy sector.
"It’s baffling, with fuel prices already rising due to the conflict in Iran, that EPA is finalizing a rule that will make things far worse for consumers," said Chet Thompson, president and CEO of the American Fuel & Petrochemical Manufacturers.
"This is not what energy dominance looks like."
Trump is seeking to consolidate support among the important agriculture and energy constituencies ahead of the November midterm elections while battling consumer inflation, most visible at the gasoline pump. Since the outset of the Iran war, average retail U.S. gasoline prices have risen to nearly $4 a gallon nationwide.
...
The EPA in June 2025 had proposed much lower obligations - 24.02 billion RINs in 2026 and 24.46 billion RINs in 2027 - without taking a position on what percentage of previously waived obligations should be reallocated.
...
AFPM's Thompson said he believed U.S. biofuels mandates have already increased consumer pump prices by 25 cents a gallon, and that the new mandates would further raise them.
Diesel prices have risen even faster than regular gasoline; it is up to $5.38 a gallon from $3.76 a gallon a month ago, according to AAA figures.
The EPA also said that starting in 2028, foreign fuels and feedstocks will receive only half of the RINs of American-made products, a measure it said would help the domestic biofuel industry. READ MORE
Excerpt from Biofuels International: NATSO, representing truck stops and travel plazas, SIGMA and the National Association of Convenience Stores (NACS) praised the Environmental Protection Agency and the Trump Administration for issuing ambitious Renewable Volume Obligations (RVOs) under the Renewable Fuel Standard.
They urged Congress to quickly enact biofuel tax incentives that can help bring down retail fuel costs.
NATSO, SIGMA and NACS, which represent 90% of fuel sold at retail, said reinstating the Biodiesel Tax Credit represents a significant opportunity to strengthen demand for renewable fuels – enhancing supply options and alleviating fuel price pressures caused by today’s market volatility and geopolitical risks.
“Fuel retailers applaud the Administration for keeping sight of the real-world implications of biofuels policy on American energy supplies and consumers,” said David Fialkov, executive vice-president of government affairs for NATSO and SIGMA.
“Robust blending mandates such as those announced today can incentivise additional production of renewable fuels, creating additional supply and stabilising prices.”
“At the same time, Congress should consider re-extending the Biodiesel Tax Credit to make diesel fuel — and all goods that move by truck — more affordable,” Fialkov said. “As the nation’s lawmakers seek urgent solutions to stabilize supply and mitigate fuel costs for consumers, they should turn to the solution we know works.”
Geopolitical instability in the Middle East has introduced significant uncertainty into global oil markets, placing upward pressure on diesel prices at a time when American consumers and businesses can least afford it.
Biofuels play an important role in expanding supply while offering consumers a more affordable alternative to conventional fuel.
“Strong RVOs send an important market signal, but they work best when paired with consumer-friendly fuel tax policy,” said Matt Durand, deputy general counsel for NACS.
“When Congress aligns the RFS with proven incentives like the Biodiesel Tax Credit, fuel retailers and their suppliers are better positioned to deliver lower-cost fuels to end users.” READ MORE
Excerpt from Bergeson & Campbell: On April 1, 2026, the U.S. Environmental Protection Agency (EPA) issued a final rule establishing the applicable volumes and percentage standards for 2026 and 2027 for cellulosic biofuel, biomass-based diesel (BBD), advanced biofuel, and total renewable fuel. 91 Fed. Reg. 16388. The Renewable Fuel Standard (RFS) “Set 2” final rule also partially waives the 2025 cellulosic biofuel volume requirement and revises the associated percentage standard due to a shortfall in cellulosic biofuel production. EPA notes that it is promulgating several regulatory changes to the RFS program, including removing renewable electricity as a qualifying renewable fuel under the RFS program and making minor revisions to the biogas provisions of the RFS program. The final rule will be effective June 15, 2026, except for amendatory instruction 47, which will be effective April 28, 2026, and amendatory instruction 17, which will be effective January 1, 2027.
According to EPA’s March 27, 2026, press release, to meet the “historic” 2026 and 2027 volume levels, EPA estimates that biodiesel and renewable diesel production and use will need to increase by over 60 percent compared to 2025 volumes, the last year of the Biden-Harris Administration’s “Set 1.” EPA notes that that this “will drive renewed demand for American soybean producers.” EPA states that it estimates that Set 2 “will generate over $10 billion for rural economies and create over 100,000 new jobs in the agricultural and manufacturing sectors. To provide continued certainty for American corn growers and ethanol producers, EPA will maintain the 15 billion conventional biofuel level for 2026 and 2027.” Beginning in 2028, foreign fuels and feedstocks will receive half the RFS compliance value compared to American-made products, “providing American biofuel producers with time to prepare for the change while ensuring that American farmers benefit from the RFS program and American energy independence.” READ MORE
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