The EPA announced a major step forward to strengthen American energy security and support American farmers by proposing Renewable Fuel Standard (RFS) volume requirements for 2026 and 2027. This action represents a critical and much-needed step in the evolution of this program. This is the 20th anniversary of the RFS program. Under President Trump鈥檚 leadership, EPA鈥檚 鈥淪et 2鈥� proposal ensures the RFS program remains true to Congress鈥� original intent of increasing the use of homegrown American biofuels, unleashing American energy, and supporting rural economies.
If finalized, these would be the highest volume requirements ever under the RFS program. Under President Trump and Administrator Zeldin鈥檚 leadership, EPA is putting Americans back in charge of its energy future. The action consists of three major proposals:
- Sets strong growth targets for key renewable fuels.
- Puts America first by reducing the value of renewable fuels and feedstocks from foreign countries.
- Furthers the President鈥檚 goal of eliminating the electric vehicle (EV) mandate, by removing electricity as a qualifying renewable fuel under the RFS program (eRIN)
Historically, the RFS was a 鈥渙ne dial鈥� system, where the only changes to the program were increasing or decreasing volumes. Today, EPA is proposing a second dial that relates to the value of a RIN based whether the biofuel is from domestic or foreign sources. Specifically, foreign biofuels and feedstocks are only being provided 50 percent of the value relative to domestic biofuels and feedstocks.
The proposed rule strengthens U.S. energy security by reducing reliance on foreign sources of oil by roughly 150,000 barrels of oil per day over the time frame of the Set 2 rule, 2026 and 2027. Additionally, in 2024, about 45 percent of biomass-based diesel (BBD) feedstock and finished fuel came from foreign sources. By reducing the value of the RIN for foreign biofuels and feedstocks, it will decrease America鈥檚 reliance on these imports, promote U.S. production, and increase American energy security.
The Set 2 Rule proposes the biofuel volume requirements and associated percentage standards for cellulosic biofuel, biomass-based diesel (BBD), advanced biofuel, and total renewable fuel for 2026 and 2027. The volume targets are as follows:
Table 1:聽 Volume Requirements 2023 鈥� 2027 (billion RINs)a
听补 One RIN is equivalent to one ethanol-equivalent gallon of renewable fuel.
The proposal supports President Trump’s broader economic vision of strengthening American energy independence, growing domestic agricultural markets. These volume requirements, if finalized, 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鈥檚 energy security and keeping rural economies strong.