(WASHINGTON D.C.) — On Friday, the U.S. Environmental Protection Agency announced the long-awaited Renewable Fuel Standard (RFS) “Set 2” final rule establishing the renewable fuel volume requirements for 2026 and 2027 at the highest levels in program history. The news has been met with praise and support from agriculture, lawmakers and industry stakeholders alike.
“U.S. soybean farmers needed a win to boost domestic markets this year, and President Trump, Administrator Zeldin, and Secretary Rollins delivered in a big way. ASA is grateful for the tireless efforts of EPA and USDA to ensure the soy biofuel value chain could benefit from the strongest RVOs ever finalized,” said Scott Metzger, American Soybean Association President and farmer from Ohio. “The 2026-2027 RVOs will increase soybean oil use, boost U.S. soybean processing, and grow domestic biofuel markets for our crop. ASA and our soybean farmer members applaud the Trump Administration for getting this tremendous rule across the finish line.”
The updated 2026-2027 Renewable Volume Obligation rule will increase biomass-based diesel blending to approximately 5.4-5.5 billion gallons—an over 60% increase from 2025 volumes. Further, the rule reallocates 70% of retroactive 2023-2025 small refinery exemption volumes that EPA took action on last year in addition to the 2026-2027 compliance years. ASA appreciated EPA clearing a significant backlog of legacy SREs dating back to 2016, which were remanded to the agency, and is glad to see a significant reallocation of volumes back into the blending pool to support additional biofuel production and increase soybean demand.
“President Trump, EPA Administrator Zeldin, and Secretary Rollins have delivered a landmark rule that provides the certainty and confidence American farmers and processors need,” said Devin Mogler, President and CEO of National Oilseed Processors Association (NOPA). “The historic volumes for biomass-based diesel, the 70 percent reallocation of waived gallons, and the commitment to account for SREs on a go-forward basis restores program integrity and puts the RFS back on a growth trajectory. We also welcome the inclusion of the half-RIN for finished fuels and feedstocks beginning in 2028, a critical step toward ensuring the RFS supports American farmers and domestic manufacturing first and foremost, as it was always intended to do. This rule reflects the strengths and capabilities of U.S. farmers and domestic manufacturing, and NOPA is proud to support it.”
Ohio farmer and National Corn Growers Association President Jed Bower expressed his appreciation in a statement, while also indicating that more work needs to be done including permanent year-round legislation for E15. “Our deep thanks goes to President Trump and Administrator Zeldin for releasing these robust RVO numbers in an exceptionally timely manner and, appropriately, during an event honoring America’s farmers,” according to Bower. “This action provides certainty to corn farmers across the country who rely on a stable biofuels industry. Today’s announcement, coupled with the Trump administration’s E15 summertime waiver earlier this week, is a positive move for the nation’s corn growers who are navigating an exceptionally difficult economic environment. There is still more to be done to help our growers, and we look forward to working side-by-side with the president and our allies in Congress to get permanent year-round E15 legislation over the finish line.”
National Sorghum Producers welcomed the news also, thanking President Trump, EPA Administrator Lee Zeldin and U.S. Department of Agriculture Secretary Brooke Rollins for advancing strong biofuel targets that support American agriculture and energy production.
“We appreciate President Trump, Administrator Zeldin and Secretary Rollins for delivering strong RVO volumes and doing so in a way that recognizes the importance of American farmers,” said NSP Chair Amy France, a farmer from Scott City, Kan. “These volumes provide critical certainty for sorghum producers and help strengthen demand across the biofuels sector.”
NSP also highlighted EPA’s decision to reallocate 70 percent of previously exempted volumes, helping ensure that promised demand is realized. “Maintaining the integrity of the Renewable Fuel Standard is essential,” France said. “Reallocating those gallons helps protect the market opportunities farmers depend on.”
National Farmers Union (NFU) President Rob Larew also shared reaction to the news, saying in part that “we thank EPA for finalizing updated Renewable Volume Obligations under the RFS. These increased targets for biodiesel and renewable diesel send a strong signal to the marketplace and create meaningful new demand for America’s family farmers and ranchers. At a time of significant economic pressure across agriculture, policies that strengthen domestic demand are more important than ever. Expanded biofuel volumes translate directly into stronger markets for our corn and soybean growers, helping support farm income and rural communities. We are especially encouraged by steps that prioritize domestically produced feedstocks. Ensuring that American-grown commodities remain at the center of biofuel production is critical to delivering the full economic benefits of the RFS here at home.”
Lawmakers also shared reaction to the EPA and Trump administration announcement on Friday. “President Trump is focused on rural America and expanding opportunities to provide greater certainty to family farmers who face new pressures,” said U.S. Senate Committee on Agriculture, Nutrition, and Forestry Chairman John Boozman (R-AR). “Reducing barriers for producers to operate and ensuring they have the tools and resources needed to raise and grow our nation’s food are practical steps to maintaining their operations and strengthening the future of agriculture. President Trump secured historic investments in agriculture through the Working Families Tax Cuts that modernizes the farm safety net, enhances risk management tools and expands access to affordable crop insurance. I’m committed to building on that momentum and advancing Farm Bill 2.0. Combined with a farm assistance package that would build on the Farmer Bridge Assistance Program delivered by the White House last year, our farmers will be in a better position to continue producing the safest, most affordable and abundant supply of food in the world.”
Iowa Secretary of Agriculture Mike Naig, in a statement, said in part that “biofuels lower costs at the pump, strengthen corn and soybean markets, and support jobs in rural America. I thank President Trump and his administration for reinforcing the original intent of the RFS by expanding the use of homegrown fuels and reducing our reliance on unpredictable global energy markets—especially during times of supply disruption and price volatility. These volumes are strong for ethanol and historic for biodiesel, sending a clear growth signal to a sector that has been needing stability and predictability.”
North Dakota Farmers Union (NDFU) also applauded the Trump administration’s announcement of higher renewable fuel volumes to be blended into the U.S. fuel supply. “We appreciate the Administration’s increase in mandated renewable fuel levels,” said NDFU President Matt Perdue. “Growing domestic demand for renewable fuels is critical to the long-term success of North Dakota family farmers. As producers cope with extreme market volatility, the new Renewable Volume Obligations provide much-needed certainty.”
Perdue said the new RVOs, along with the recently announced summertime E15 waiver, provide regulatory clarity for farmers and renewable fuel producers in the near-term. “Now, it’s time for Congress to step up and act on the President’s call to action and authorize permanent year-round E15,” he said. “Farmers need strong, stable demand, not a regulatory patchwork.”
Fuel retailers including NATSO, representing truck stops and travel plazas, SIGMA: America’s Leading Fuel Marketers 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 and simultaneously urged Congress to quickly enact biofuel tax incentives that can help bring down retail fuel costs.
NATSO, SIGMA and NACS, which represent 90 percent 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 incentivize additional production of renewable fuels, creating additional supply and stabilizing 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.”
However, not all of the reaction has been positive to the EPA news on the RFS. In a statement, American Biogas Council (ABC) Executive Director Patrick Serfass said in part that “EPA’s final rule fails to represent real-world biogas growth, which will constrain markets. The action especially undercuts opportunities for livestock farmers, impeding one of the most reliable ways farmers can keep pace in a low-margin agriculture industry, and contribute to America’s energy dominance.”
Serfass continue “In this set of fuel targets for 2026 and 2027, the agency diverged from longstanding methods and abandoned statutory guidelines when they estimated D3 RIN volumes on projected renewable natural gas (RNG) end-use constraints rather than what the U.S. biogas industry can produce – and even with this new approach, the agency has also significantly underestimated real-world demand. This approach looks to constrain domestic, renewable fuel production, a foundation of RFS goals, instead of supporting U.S. fuel industries which recycle organic residues, and more fully utilize American crops.”
