On June 13, 2025, the EPA announced it’s proposing the highest-volume requirements ever proposed under the Renewable Fuel Standard (RFS) program. If finalized, these volume requirements will set record-high levels of biofuels blended into fuels to meet U.S. transportation needs.
The announcement resulted in a 25-cent increase in soybean prices, according to Michigan Farm News, which explains that the “EPA’s renewable volume obligations (RVOs) proposal applies to 2026 and 2027, stipulating that the nation’s refiners must blend 15 billion gallons of conventional biofuels into the nation’s fuel blend for each plan year, and prioritizes domestically produced renewable fuels over imports.”
“The proposal includes:
- 24.02 billion gallons (bg) for 2026, including 15 bg for conventional renewable fuels like corn ethanol and 9.02 bg for advanced biofuels — including 5.61 bg of biomass-based diesel and 1.3 bg of cellulosic biofuel.
- 24.46 bg for 2027, of which 15 bg is conventional renewable fuel and 9.46 is advanced biofuel.”
This year is the 20th anniversary of the RFS program.
“Under President Trump’s leadership, EPA’s ‘Set 2’ proposal ensures the RFS program remains true to Congress’ original intent of increasing the use of homegrown American biofuels, unleashing American energy, and supporting rural economies,” an EPA news release states.
“We are creating a new system that benefits American farmers while mitigating the impact on gas prices and ensuring the continued existence of liquid fuels,” said EPA Administrator Lee Zeldin in the release. “We can no longer afford to continue with the same system where Americans pay for foreign competitors.”
The Agency’s announcement consists of three proposals:
- It sets strong growth targets for key renewable fuels.
- It puts America first by reducing the value of renewable fuels and feedstocks from foreign countries.
- It furthers the president’s goal of eliminating the electric vehicle (EV) mandate by removing electricity as a qualifying renewable fuel under the RFS program (eRIN).
In the past, the only changes to the RFS program were those made to the allowed volumes, which the Agency referred to as “one dial.”
This announcement proposes “a second dial that relates to the value of a RIN (Renewable Identification Number) 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,” the EPA’s release continues. “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’s reliance on these imports, promote U.S. production, and increase American energy security.”
Many have expressed support for the proposed standards, stating they provide some much-needed long-term certainty for producers.
“Farm Bureau applauds the [EPA] and Administrator Lee Zeldin for recognizing the importance of biofuels for farmers and America’s families,” said American Farm Bureau Federation President Zippy Duvall in a separate Agency news release. “EPA’s proposed [RFS] for 2026 and 2027 would increase domestic biofuel production, prioritize home-grown crops, and enable producers to meet the demands of emerging international markets. America’s families who choose to use biofuels could see much-needed relief at the gas pump, with savings of 10 to 30 cents per gallon. Renewable fuels have been a tremendous success story for the country and our rural economy. The RFS has reduced greenhouse gas (GHG) emissions and created markets for farmers who answered the call to help America become energy independent.”
See the EPA news release for the specific proposed volume requirements.
See the EPA’s fact sheet for more information on the Set 2 Rule.