EPA Proposes New Renewable Fuel Standards to Strengthen U.S. Energy Security, Support Rural America, and Expand Production of Domestic Fuels
WASHINGTON – Today, the U.S. Environmental Protection Agency (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’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.
“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. “We can no longer afford to continue with the same system where Americans pay for foreign competitors.”
“President Trump recognizes how important the Renewable Fuel Standard is for American corn and soybean farmers. This move by Administrator Zeldin is the boldest proposal ever and will provide certainty in a much-needed market for our producers while delivering lower prices at the pump for consumers. USDA and EPA have never been more aligned on the need for more American grown biofuels. This is the highest ever Renewable Volume Obligation and it sends a strong signal to the U.S. biofuels industry that President Trump has their backs and gives them the incentive to invest in American products for American consumers and to export around the world. America’s national security depends on our energy security, and biofuels are a crucial asset that brings more jobs and helps farmers in rural America,” said Secretary of Agriculture Brooke Rollins. “As the Trump Administration expands the domestic market for biofuels, at USDA we are working to break down tariff and non-tariff barriers for our American grown biofuels. President Trump’s landmark deal with the U.K. secured zero tariff access for over $700 million in ethanol exports. Not only can we be energy independent, we are unleashing American energy dominance abroad.”
If finalized, these would be the highest volume requirements ever under the RFS program. Under President Trump and Administrator Zeldin’s leadership, EPA is putting Americans back in charge of its energy future.
Today’s 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’s 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 “one dial” 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’s 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: Volume Requirements 2023 – 2027 (billion RINs)a
a 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, and fighting back against unfair trade practices. 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’s energy security and keeping rural economies strong.
More information on the Set2 Rule can be found here.