US EPA Sends Biofuel-Blending Volume Proposal to White House for Review

May 15, 2025

Print This Article Share it With Friends

by Stephanie Kelly (Reuters) The U.S. Environmental Protection Agency has sent a proposed rule to the White House for review on the amount of biofuels that oil refiners must blend into their fuel beginning in 2026. Under the Renewable Fuel Standard, oil refiners must blend billions of gallons of biofuels into their fuel or buy tradable credits from those that do. READ MORE

Related articles

Zeldin provides timeline for upcoming RFS rulemaking (Ethanol Producer Magazine)
Clean Fuels Applauds Bipartisan Congressional Letter Supporting Robust 2026 RFS Volumes (Clean Fuels Alliance America)
EPA Sends 2026 RVO Proposal and 2024 Cellulosic Waiver to OMB (AgWeb)
Members of Congress Urge President to Set Strong RVOs (Energy.AgWired.com)
Lawmakers advocate for robust RFS RVOs (Ethanol Producer Magazine)
Lawmakers Urge White House to Ensure Strong RFS Volumes (Renewable Fuels Association)
EPA to set biofuel mandate 'very soon': Zeldin (Argus Media)
EPA Administrator Addresses E15 and RVO Questions (AgNewsWire; includes AUDIO)
Zeldin discusses timeline for 2026 RFS rulemaking during Senate hearing (Ethanol Producer Magazine)
Time is running out: Will the EPA move on biodiesel by Memorial Day? | Opinion (Des Moines Register)
Clean Fuels, Member Companies Urge EPA to Unleash Biomass-based Diesel (Clean Fuels Alliance America)

Excerpt from Ethanol Producer Magazine: U.S. EPA Administrator Lee Zeldin on May 14 confirmed the agency will “over the next few months” be completing a rulemaking process to set new Renewable Fuel Standard renewable volume obligations (RVOs).

Zeldin commented on the EPA’s RFS rulemaking plans during a hearing held by the Senate Committee on Appropriation’s Subcommittee on Interior, Environment and Related Agencies to review President Donald Trump’s fiscal year (FY) 2026 budget request for the EPA.

During the hearing, Sen. Deb Fischer, R-Neb., criticized the previous administration for missing RFS regulatory deadlines and setting RVOs for biobased-diesel too low. She asked Zeldin for an update on the EPA’s expected timeline for its next RFS RVO rulemaking.

Zeldin said the agency is “going to be going through the rulemaking process now over the next few months.” He also indicated the EPA plans to meet future statutory RFS rulemaking deadlines.

“Over the course of the next few months there is going to be an opportunity for the public to weigh in during a public comment period before a final decision is made,” he added, noting that many parties are already advocating for increased RVO levels.

Fisher also discussed the issue of E15, asking Zeldin if congressional action is the best solution to ensure the ability to sell E15 year-round. “That is the most durable and easiest solution to this issue,” Zeldin responded.

A full replay of the hearing is available on the Senate Committee on Appropriations website. READ MORE

Excerpt from Clean Fuels Alliance America: Today, Clean Fuels Alliance America thanked 28 House Members who sent a letter to President Donald Trump, encouraging the administration to adopt a timely, robust Renewable Fuel Standard rule for 2026 and beyond. The bipartisan letter was led by Reps. Ashley Hinson (R-IA) and Angie Craig (D-MN).

“A strong Set 2 will benefit our constituents by lowering prices at the pump, creating and maintaining U.S. biomanufacturing jobs, and driving economic growth,” the letter states. “A strong RVO will also support market growth for farmers at a time when global markets are experiencing uncertainty. The domestic biofuels industry stands ready to increase availability of affordable fuels options and support the administration’s goal of American energy dominance.”

The letter specifically supports a 2026 Biomass-based Diesel volume of 5.25 billion gallons and increasing volumes for future years, consistent with unified requests by Clean Fuels, other industry partners, and RFS stakeholders. It further asks the President to reject abuse of small refinery exemptions to protect demand for U.S. crops in the biofuel market, which is essential for farmers.

The letter continues, “Set the biomass-based diesel RVO at 5.25 billion gallons in 2026 and at increasing levels in future years (with an equivalent increase in total volumes), reflecting the rapid growth of renewable diesel and soybean processing capacity.”

Kurt Kovarik, Clean Fuels’ Vice President of Federal Affairs, added, “Biodiesel and renewable diesel production is an essential market for American farmers. Clean Fuels and its members thank Representatives Ashley Hinson and Angie Craig for leading this bipartisan effort. And we appreciate EPA Administrator Lee Zeldin’s commitment to getting the Renewable Fuel Standard rules back on schedule.

“RFS stakeholders are unified in asking EPA to set the 2026 RFS Biomass-based Diesel volume at 5.25 billion gallons, with appropriate growth for 2027 and beyond. That volume will support American agriculture and benefit U.S. consumers with lower fuel prices, more jobs, and increased economic growth.”

Letter on RFS Volumes to President Trump from 28 Representatives.

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

Excerpt from AgWeb: EPA submitted two major biofuel-related actions to the White House Office of Management and Budget (OMB) for review: its proposed rule for Renewable Volume Obligations (RVOs) for 2026 and beyond under the Renewable Fuel Standard (RFS), along with its final rule to partially waive the 2024 cellulosic biofuel mandate.

The conjecture (not confirmed by EPA or other sources) is that EPA would announce a biodiesel mandate of 4.65 billion gallons, at least 600 million gallons below recommendations from a coalition of oil and biofuels groups. The industry has previously requested a mandate between 5.25 billion and 5.75 billion gallons.

Perspective: 4.65 billion gallons would be a BIG jump from 3.35 billion gallons for 2025 and would be a floor... not a ceiling.

While the forward-looking RVOs draw long-term interest, the agency’s final decision regarding 2024 cellulosic requirements is also awaited. In a proposal issued December 2024, EPA suggested reducing the 2024 cellulosic biofuel volume requirement from 1.09 billion Renewable Identification Numbers (RINs) to 0.88 billion — a cut of 0.21 billion RINs. This partial waiver remained pending even after EPA extended the 2024 compliance reporting period earlier this year.

Meanwhile, The Trump administration plans to rule quickly on dozens of small U.S. refineries’ pending applications for exemptions from biofuel-blending requirements, EPA Administrator Lee Zeldin told lawmakers.

There are 161 applications for exemptions from the RFS pending after the Biden administration refrained from acting on them. READ MORE

Excerpt from Ethanol Producer Magazine: “Projected obligations should accurately reflect the availability of feedstocks and ongoing investments in production capacity,” the lawmakers wrote. “Now more than ever, it is essential to identify and promote opportunities, like the upcoming RVOs, that lower costs for consumers and support economic growth.

“Even before you took office, the EPA was months behind meeting the statutory deadline to set RVOs, which only exacerbated market instability,” they continued. “Domestic biofuel production facilities have already idled, and further delays in action could result in additional closures, putting Americans out of work and disrupting key markets for farmers.”

Within the letter, the House members note that strong RFS RVOs will lower prices at the pump while creating and maintaining U.S. biomanufacturing jobs and driving economic growth. “A strong RVO will also support market growth for farmers at a time when global markets are experiencing uncertainty. The domestic biofuels industry stands ready to increase availability of affordable fuels options and support the administration’s goal of American energy dominance,” they added.

The lawmakers ask Trump to ensure the implied RVO for conventional biofuel is set at least 15 billion gallons. The RVO for biomass-based diesel should be set at 5.25 billion gallons in 2026, increasing to higher levels in future years to reflect the rapid growth of renewable diesel and soybean processing capacity. In addition, the House members are urging Trump to reject any abuse of small refinery exemption (SRE) authority and ensure any legitimate SREs have their volumes accounted for in the RVOs to prevent lost demand in key markets for farmers.

The U.S. EPA has begun the rulemaking process to set the 2026 RVOs. The agency on May 14 delivered its proposed rule to set 2026 RFS RVOs to the White House Office of Management and Budget, kicking off the interagency review process. Also on on May 14, EPA Administrator Lee Zeldin confirmed the agency will “over the next few months” be completing a rulemaking process to set new RFS RVOs. READ MORE

Excerpt from Renewable Fuels Association: The Renewable Fuels Association today thanked a bipartisan group of 28 members of Congress, led by Reps. Ashley Hinson (R-IA) and Angie Craig (D-MN), who called on President Trump to adopt “timely, robust” renewable volume obligations for 2026 and beyond, and “reject abuse” of EPA’s small refinery exemption authority.

“With the U.S. Environmental Protection Agency’s proposed rulemaking for RVOs now under review at the White House, this is a critical moment to engage with the administration and make clear what’s at stake—both for the farm economy and for American energy independence,” RFA President and CEO Geoff Cooper said. “We’re grateful to Reps. Hinson, Craig, and their many colleagues for their leadership and strong commitment to advancing this important effort.”

...

The lawmakers called on the Trump administration to take the following actions on the RVOs for 2026 and beyond:

Set implied conventional biofuel RVOs of at least 15 billion gallons.
Set the biomass-based diesel RVO at 5.25 billion gallons in 2026 and at increasing levels in future years (with an equivalent increase in total volumes), reflecting the rapid growth of renewable diesel and soybean processing capacity.
Reject abuse of small refinery exemption (SRE) authority and ensure any legitimate SREs have their volumes accounted for in the RVOs to prevent lost demand in key markets for farmers.

Also signing the letter were Reps. Adrian Smith (R-NE), Sharice Davids (D-KS), Robin Kelly (D-IL), Mariannette Miller-Meeks (R-IA), Mark Alford (R-MO), Randy Feenstra (R-IA), Nikki Budzinski (D-IL), Dusty Johnson (R-SD), Michelle Fischbach (R-MN), Eric Sorensen (D-IL), Mike Flood (R-NE), Troy Carter (D-LA), Brad Finstad (R-MN), Tracey Mann (R-KS), Derek Schmidt (R-KS), Mike Bost (R-IL), Max Miller (R-OH), Ann Wagner (R-MO), Mark Pocan (D-WI), Shontel Brown (D-OH), Darin LaHood (R-IL), Ron Estes (R-KS), Sam Graves (R-MO), Mark Messmer (R-IN), Julie Fedorchak (R-ND) and Zach Nunn (R-IA). READ MORE

Excerpt from AgNewsWire: Environmental Protection Agency (EPA) Administrator Lee Zeldin faced members of the Senate Appropriations Committee Wednesday to answer questions about the agency’s 2026 fiscal year budget request, including as it relates to biofuels.

Senator Deb Fischer (R-NE) asked Zeldin about the need for a permanent legislative solution for the nationwide sale of year-round E15. “Is it true that, despite President Trump’s best efforts, if we want real certainty here for consumers, Congress has to act. Is that correct?” asked Fischer.

“That is the most durable and easiest solution to this issue,” responded Zeldin. “I’ve been in the position a little over 100 days, and I have had many, many, many meetings about this topic. And a lot of passionate advocacy from, including you, Senator, and your colleagues and your constituents. If Congress was to finalize a long-term, durable solution, so much of that advocacy on your part, all of your time can be better spent fighting for other priorities of your constituents.”

Sen. Fischer also asked Zeldin for an update on when EPA might release Renewable Volume Obligations under the Renewable Fuel Standard. “We are going to be going through a rule making process now over the course of the next few months,” said Zeldin. “We did inherit a blown deadline. We’re looking to not only resolve that deadline in setting RVOs, but to also look to the future and to operate going forward in a way where we don’t blow any deadlines moving forward. So over the course of the next few months, there’s going to be an opportunity for the public to weigh in during a public comment period before a final decision is made.”

Listen to the exchange here:
Play Sen. Fischer questions EPA Admin Lee Zeldin 5:36 READ MORE

Excerpt from Ethanol Producer Magazine: U.S. EPA Administrator Lee Zeldin on May 21 stressed the agency is working “as fast as humanly possible” to finalize a rulemaking setting 2026 Renewable Fuel Standard renewable volume obligations (RVOs) during a hearing held by the U.S. Senate Committee on Environment and Public Works to consider the EPA’s fiscal year (FY 2026) budget request.

Sen. Pete Ricketts, R-Neb., questioned Zeldin on the timing of the RFS rulemaking during the hearing, noting that strong RVOs drive the agriculture markets in real ways and create “strong markets that producers are in desperate need of right now in today’s farm economy.”

Ricketts criticized the Biden administration for its RFS rulemaking delays and decision to set RVOs for biobased diesel at levels below current production capacity. He also expressed disappointment in recent rumors that the EPA is currently planning to set the 2026 RVO for biomass-based diesel at 4.625 billion gallons. That rumor caused soybean basis to drop almost 30% last week, he said. Ricketts encouraged Zeldin to set the 2026 RVO for biomass-based diesel at 5.25 billion gallons and ensure an implied RVO for corn ethanol of at least 15 billion gallons.

He also asked Zeldin to disclose the EPA’s anticipated timeline for the pending 2026 RFS rulemaking. Zeldin noted that the EPA has already delivered a proposed rule to the White House Office of Management and Budget, where it is undergoing the interagency review process.

“We expect a proposed rule to be finalized and released very soon,” Zeldin said. “We’ll go through rulemaking that includes the public comment period. We’ll finalize this as quickly as we possibly can…we will get this done as fast as humanly possible.”

When pressed by Ricketts if that means the rule could be finalized this summer or this fall, Zeldin replied “much, much faster.”

The EPA delivered the proposed rule to set upcoming RFS RVOs to the OMB on May 14. To date, 10 trade groups, companies and other stakeholders have scheduled meetings with the OMB to discuss the proposed rule, with the final meeting currently scheduled for June 10. The proposed rule will be released for public comment period once the OMB’s review is complete.

A full replay of the hearing is available on the Senate Committee on Environment and Public Works website. READ MORE

Excerpt from Clean Fuels Alliance America: Clean Fuels Alliance America delivered a letter to EPA Administrator Lee Zeldin, urging him to set the 2026 RFS biomass-based diesel volume at no less than 5.25 billion gallons and allow continued growth in the 2027 volumes. Forty-eight member companies signed the letter in support of the requested volumes.

“We ask that EPA without delay set the 2026 RFS biomass-based diesel volume at not less than 5.25 billion gallons,” Clean Fuels and its members state in the letter. “We further urge you to support continuing growth by setting the 2027 RFS biomass-based diesel volume at 5.75 billion gallons.”

“These volumes will support farm security, create jobs and economic opportunity, and further President Trump’s goal for U.S. energy dominance,” the letter continues. “In short, a strong signal from EPA on the RFS will unleash domestic biodiesel and renewable diesel production to resume planned growth and get many Americans back to work.”

Download a copy of the letter.

Kurt Kovarik, Clean Fuels’ Vice President of Federal Affairs, added, “Renewable Fuel Standard stakeholders are unified in asking for no less than a 5.25-billion-gallon biomass-based diesel volume for 2026 because it accurately represents current domestic production, investments in new capacity, and increasing U.S. availability of feedstocks. Our industry is calling on Administrator Zeldin to make this step change in the RFS volumes to support the biomass-based diesel industry’s growth potential, save U.S. jobs, and boost farm security.”

The letter notes that the U.S. biomass-based diesel industry supports 107,400 jobs and $42.4 billion in economic activity, based on a new study, “Economic Impact of Biodiesel on the U.S. Economy 2024,” conducted by GlobalData on behalf of Clean Fuels.

ABOUT CLEAN FUELS ALLIANCE AMERICA