The EPA Proposes New Renewable Fuel Standards for 2026-2027

The Environmental Protection Agency (EPA) recently unveiled its proposed rules for the Renewable Fuel Standard (RFS) for the years 2026 and 2027. One of the highlights of this proposal is the significant increase in biomass-based diesel mandates, which represents a broader commitment to elevate the incorporation of biofuels into the U.S. fuel supply. Initial reactions from stakeholders in the ethanol and biofuels sectors have been overwhelmingly positive.

As highlighted in an article by Reuters, the RFS regulations mandate refiners to either incorporate large volumes of biofuels into the national fuel supply or acquire credits known as Renewable Identification Numbers (RINs).

Proposed Increases in Biofuel Blending Volumes

The EPA’s report proposes raising the total biofuel blending requirement from 22.33 billion gallons in 2025 to 24.02 billion gallons in 2026, and further to 24.46 billion gallons in 2027. Specifically, the RIN mandate for biomass-based diesel is set to rise dramatically from 5.36 billion in 2025 to 7.12 billion in 2026, culminating at 7.50 billion in 2027.

Reactions from Federal Officials

USDA Secretary Brooke Rollins

In a statement, Secretary Rollins commended the efforts of EPA Administrator Lee Zeldin for endorsing what she termed “the boldest proposal ever.” She noted, “President Trump acknowledges the importance of the RFS for American farmers.” Rollins highlighted the proposal as a strong signal for the U.S. biofuels sector, reinforcing the administration’s commitment to foster domestic biofuel production and energy independence.

Sen. Joni Ernst

Iowa Senator Joni Ernst praised the renewed focus on liquid transportation fuels and emphasized the administration’s commitment to championing rural America. “This indicates a commitment to revitalizing the biofuel industry,” she noted while stressing the importance of ensuring the program’s integrity against small refinery exemptions.

Industry Response

Clean Fuels Alliance of America

Kurt Kovarik, Vice President of Federal Affairs for Clean Fuels Alliance America, expressed optimism regarding the RFS proposal, adding that it sends a timely signal to biodiesel, renewable diesel, and sustainable aviation fuel producers. He anticipates beneficial impacts for American farmers and agricultural communities.

Growth Energy

Emily Skor, CEO of Growth Energy, stressed that the proposed RVOs offer critical support to both farmers and ethanol producers. She believes that the proposal will encourage further investments, job creation, and innovation within the renewable fuel sector.

American Petroleum Institute

The American Petroleum Institute welcomed the proposal for bringing stability to the marketplace and indicated their readiness to collaborate with the EPA for a beneficial outcome for all stakeholders.

Farmer Organizations

American Farm Bureau Federation

Zippy Duvall, President of AFBF, declared that this proposal prioritizes home-grown crops and allows producers to meet international market demands. He added that families opting for biofuels could experience much-needed savings at the gas pump.

National Corn Growers Association

NCGA President Kenneth Hartman Jr. noted that the proposals offer significant clarity and reassurance for corn farmers reliant on a stable biofuels market.

State-Level Organizations’ Support

Iowa Renewable Fuels Association

The IRFA expressed approval of the EPA’s proposal, recognizing it as a solid starting point for discussions related to renewable fuel standards. They emphasized the need to account for small refinery exemptions in future regulations.

Iowa Department of Agriculture

Iowa Secretary of Agriculture Mike Naig reaffirmed his support for the proposal and urged the administration to explore further opportunities to bolster the biofuels industry.

Iowa Corn Growers Association

President Stu Swanson celebrated the proposed standards, emphasizing their significance for corn-based ethanol demand and reduced dependence on foreign fuels.

Editor’s note: Some statements have been edited for coherence and clarity.