Ag Industry Cheers EPA’s 2026/27 RFS Plan

The Environmental Protection Agency (EPA) announced Friday morning its proposed 2026/2027 rules for the Renewable Fuel Standard (RFS). The proposal included a rise in biomass-based diesel mandates as part of an overall proposed rise in the amount of biofuels that must be blended into the U.S. fuel mix. Initial feedback from ethanol and biofuels groups has been almost entirely positive.

According to an article from Reuters, RFS rules require refiners “to blend large volumes of biofuels into the nation’s fuel supply or purchase credits, called Renewable Identification Numbers (RINs).”

The EPA’s report proposed an increase in total biofuel blending volume requirements from 22.33 billion gallons in 2025 to 24.02 billion gallons in 2026 and 24.46 billion gallons in 2027. The volume requirement for biomass-based diesel mandates in 2026 and 2027 will take a large hike — going from a 5.36 billion RIN mandate in 2025 to 7.12 billion in 2026 and 7.50 billion in 2027.

A number of reactions have rolled in since the proposed rules were released — including statements from biofuels organizations, commodity groups, and Secretary of Agriculture Brooke Rollins.

Federal Officials

USDA

In a statement, Secretary Rollins praised EPA Administrator Lee Zeldin for signing off on what she called “the boldest proposal ever.”

“President Trump recognizes how important the RFS is for American corn and soybean farmers,” Rollins said. “USDA and EPA have never been more aligned on the need for more American grown biofuels. This is the highest ever RVO [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. 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.”

Sen. Joni Ernst

A member of the Senate Ag Committee, the Iowa Republican has served in the Senate since 2015. 

“By eliminating the electric vehicle mandate and restoring the RFS’ original focus on liquid transportation fuels, prioritizing domestically grown crops over foreign imports, setting record-high volumes to revitalize the biofuel industry, and adopting safeguards to prevent small refinery waivers from gutting the program — it is clear the Trump administration is committed to championing rural America,” Ernst said. “I look forward to working with President Trump’s team to usher this rule across the finish line and keep delivering for Iowa’s farmers, biofuel producers, and rural communities.”

Biofuel Groups

Clean Fuels Alliance of America

Clean Fuels Alliance America is the U.S. trade association representing the entire biodiesel, renewable diesel, and sustainable aviation fuel supply chain, including producers, feedstock suppliers, and fuel distributors. Clean Fuels receives funding from a broad mix of private companies and associations, including the United Soybean Board, Nebraska Soybean Board, and other state checkoff organizations.

Kurt Kovarik, Clean Fuels’ vice president of federal affairs, stated: “Today’s RFS proposal is a welcome and timely signal to U.S. biodiesel, renewable diesel, and SAF [sustainable aviation fuel] producers as well as America’s farmers and agricultural businesses. The industry has made major investments in domestic production capacity and feedstocks to meet America’s energy needs and provide consumers affordable, cleaner fuels. We anticipate this will have a tremendous beneficial impact for American farmers and agricultural communities and we look forward to working with President Trump and EPA Administrator Zeldin to finalize this rule and fully unleash U.S. clean fuel producers.

“Our industry supplied more than 5 billion gallons of biodiesel, renewable diesel, and SAF to the U.S. market in 2024, and is poised to deliver more in 2026,” Kovarik said. “The U.S. biomass-based diesel industry supports 107,400 jobs and generates $42.4 billion in economic activity. Continued market growth and stability through the RFS will enable more economic opportunities, create more jobs, and revitalize America’s agricultural sector.”

Kovarik continued, “We appreciate Administrator Zeldin’s commitment to find effective solutions to the remaining backlog of small refinery exemptions. We look forward to working with him to ensure that those solutions do not erode the U.S. market for biomass-based diesel and harm American farmers and consumers.”

Growth Energy

As the nation’s largest biofuel trade association, Growth Energy is the leading voice of America’s biofuel industry. Members of the association operate and support biomanufacturing facilities at the heart of America’s bioeconomy.

Growth Energy CEO Emily Skor praised President Donald Trump and Zeldin “for keeping their promise to fight for farmers and create opportunities in rural communities that have too often been left behind.”

“Today’s proposed RVOs secure an economic lifeline for the nation’s farmers and ethanol producers,” Skor said in a statement. “EPA’s proposal will unlock investments, create jobs, and support growth in rural America, expanding renewable fuel production and creating the kind of certainty that spurs innovation and truly unleashes American energy dominance. Although EPA has yet to project future SREs [small refinery exemptions], we expect that it will ensure that any lost gallons from exemptions will be reallocated to ensure that blending obligations are met. President Trump first proposed a way to account for lost gallons in 2019, and maintaining that approach will protect biofuel producers and their farm partners from demand destruction.

American Petroleum Institute

The American Petroleum Institute (API) was founded in 1919 and represents 600 producers, processors, or distributors of natural gas and oil of America’s natural gas and oil industry, which supports nearly 11 million U.S. jobs.

“We thank EPA for releasing a timely proposal that will get the RFS program back on track and bring much-needed certainty to the marketplace,” said Vice President of Downstream Policy Will Hupman. We look forward to reviewing the rule and working with the administration on an outcome that benefits all stakeholders and is in the best interest of American consumers.”

American Coalition for Ethanol

American Coalition for Ethanol (ACE) is a leading coalition of ethanol producers aimed at informing consumers and elected officials about the benefits of ethanol and its impact on jobs, the economy, reducing greenhouse gases, and more.

“The stakes are high for this next phase of the RFS. Ethanol producers and farmers are under tremendous economic pressure, particularly due to uncertainty caused by current efforts to reorder international trade, and we need the EPA to substantially increase domestic ethanol blending under the RFS in 2026 and 2027,” said ACE CEO Brian Jennings in a press release.

“This rulemaking is a pivotal opportunity for the Trump administration to fully utilize the RFS statutory authorities by setting ambitious blending targets that reflect the critical role American ethanol plays in strengthening U.S. energy security, boosting rural economies, and reducing prices at the pump,” he continued. “While we’re encouraged the Agency has indicated it intends to move quickly toward finalizing the 2026/2027 RVOs, ACE will continue urging EPA to use its statutory authority to ensure conventional biofuel volumes are well above 15-billion gallons to support a growing U.S. ethanol industry.

“Our forthcoming comments will also emphasize the importance of projecting and reallocating SREs to provide greater certainty and uphold the integrity of the RFS program, as well as stress the need for EPA to adopt the most current GREET [greenhouse gases, regulated emissions, and energy use in technologies] model for accurately accounting lifecycle greenhouse gas emissions — emissions that continue to trend lower for ethanol,” Jennings continued.

Renewable Fuels Association

Since 1981, the Renewable Fuels Association (RFA) has been the leading trade association for America’s ethanol industry.

RFA President and CEO Geoff Cooper thanked Zeldin for listening to stakeholders in the agriculture and biofuels industries when making the proposed rules.

“Today’s proposal is an important step toward achieving President Trump’s vision of lower gas prices, a stronger agriculture industry, and American energy dominance,” Cooper said. “The volumes proposed today provide crucial growth opportunities for U.S. ethanol producers and farmers, while boosting the supply of lower-cost, American-made energy.

“This proposal sends a very positive and powerful signal to U.S. renewable fuel producers and farmers. It represents an excellent starting point for the 2026 and 2027 RVO discussion,” Cooper said. “We look forward to providing more feedback to EPA on the proposed volumes during the public comment period, and we’ll continue to underscore the vital importance of a strong RFS to America’s rural communities.”

Cooper also noted that while today’s proposed rule does not specifically address 169 pending SRE petitions, it includes a commitment from EPA to reallocate any SREs that may be granted in future actions.

“The entire supply chain is seeking certainty regarding EPA’s plans on SREs, and today’s proposal helps to clarify the agency’s approach moving forward,” Cooper said. “We agree that the agency has a legal obligation to reallocate any exempted blending volumes, consistent with the approach adopted by EPA near the end of President Trump’s first administration. However, EPA’s top priority for SREs should be maintaining a high standard for evaluating petitions and continuing to take a restrained and limited approach. The marketplace needs to be reassured that the RVOs published by EPA are real and will not be watered down or eroded by SREs.”

Farmer Organizations

American Farm Bureau Federation

The American Farm Bureau Federation (AFBF) is the nation’s largest farmer-run organization and serves farmers in all 50 states.

“EPA’s proposed Renewable Fuel Standard for 2026 and 2027 would increase domestic biofuel production, prioritize home-grown crops, and enable producers to meet the demands of emerging international markets,” said AFBF President Zippy Duvall. “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 emissions, and created markets for farmers who answered the call to help America become energy independent.”

Commodities Groups

American Soybean Association

The American Soybean Association (ASA) represents U.S. soybean farmers on domestic and international policy issues important to the soybean industry. ASA has 26 affiliated state associations representing 30 soybean-producing states and nearly 500,000 soybean farmers.

“As we celebrate the 20th anniversary of the Renewable Fuel Standard, the American Soybean Association applauds the work of President Trump, Administrator Zeldin, and Secretary Rollins in promoting American energy dominance and strengthening a key domestic market for U.S. soybean farmers,” said Caleb Ragland, ASA president and soybean farmer from Magnolia, Kentucky. “The significant increase in proposed volumes for biomass-based diesel will support soybean farmers, soybean processors, and biofuel producers in rural America, and serves as a much-needed win for our communities.”

National Corn Growers Association

Founded in 1957, the National Corn Growers Association (NCGA) represents more than 36,000 dues-paying corn growers in 48 states, and the interests of more than 300,000 farmers who contribute through corn checkoff programs in their state.

In a statement, NCGA President Kenneth Hartman Jr. also thanked the Trump administration and the EPA for producing RVO proposals in a timely fashion.

“This action provides significant certainty to corn farmers across the country who rely on a stable biofuels industry,” Hartman Jr. said.

State-Level Organizations

Iowa Renewable Fuels Association

The Iowa Renewable Fuels Association (IRFA) represents the state’s liquid renewable fuels industry and works to foster its growth. Iowa has 42 ethanol refineries capable of producing 4.7 billion gallons annually and 10 biodiesel facilities with the capacity to produce 416 million gallons annually.

“IRFA is pleased that today’s EPA proposal is a very strong starting point for further discussions,” IRFA Executive Director Monte Shaw said in a release. “We will need time to evaluate the new proposal to reduce RFS credits from imported fuels and feedstocks and the estimated volumes from both foreign and domestic feedstocks. As in the past, we will be working with EPA during the comment period to ensure that any and all SREs are accounted for in the future rule. President Trump included reallocation of SREs in the final RFS rule during his first term. We are very pleased to see indications in today’s announcement that the policy will not change.”

Iowa Department of Agriculture and Land Stewardship

Iowa’s state Department of Agriculture and Land Services (IDALS) covers animal health, food safety, and conservation efforts for the state through 14 bureaus.

“President Trump has long been a champion for American energy, and the RVO proposal announced today by EPA Administrator Zeldin is yet another example of the Administration keeping its promise to our farmers and biofuels producers,” Iowa Secretary of Agriculture Mike Naig said in a release. “Iowa leads the nation in ethanol and biodiesel production and our existing infrastructure has the capacity to produce even more home-grown biofuels. Today’s announcement sends a welcome and optimistic growth signal to this important industry.

“I strongly support the Administration’s effort to prioritize and incentivize American sourced biofuels and ingredients over foreign fuels and feedstocks, including used cooking oil from China,” Naig said.

Naig ended his statement by encouraging the Trump administration “to continue exploring additional opportunities to support the biofuels industry through new international export markets, as well as domestic markets including the use of nationwide, year-round E15.”

Iowa Soybean Association

The Iowa Soybean Association (ISA) is driven to deliver increased soybean demand through market development and new uses, farmer-focused research and results, timely information and know-how, and policy initiatives enabling farmers and the industry to flourish.

Brent Swart, ISA president and farmer from Spencer, Iowa, thanked the Trump administration for its emphasis on “the value of domestically produced renewable fuels.” He also thanked Iowa’s Congressional delegation for advocating for biofuels and agriculture in the state.

“We are pleased to see the EPA’s announcement proposing a Renewable Volume Obligation of 5.61 billion gallons and 5.86 billion gallons for biomass-based diesel,” Swart said. “This is a significant step toward putting the market back on track. It is also a long overdue recognition that Iowa farmers, soybean processors, and the state’s biodiesel producers, can contribute even more to America’s energy output.

“This timely announcement provides added certainty for our industry during the growing season, which can often be unpredictable for many farmers. While we are encouraged to see volume targets increase from previous years, Iowa farmers stand ready to grow the feedstock needed to produce greater volumes of clean fuels.

“Biomass-based diesel has long provided significant value to soybean farmers, helping us weather difficult economic times and supporting our state’s thriving agriculture industry. By increasing soybean oil value, biomass-based diesel supports roughly 10% of the price per bushel of soybeans.”

Iowa Corn Growers Association

The Iowa Corn Growers Association (ICGA) represents Iowa corn producers in all 99 counties.

“Iowa’s corn farmers are pleased with the release of the EPA’s proposed RVOs as it is a positive step for not only ensuring corn–based ethanol demand is maintained, but it is also a win for America as it decreases dependence on foreign fuels,” said President Stu Swanson. “ICGA appreciates the Trump administration and EPA’s prioritization of renewable fuels; championing homegrown, cleaner burning biofuels that support America’s farmers.”

Editor’s note: Some of the previous statements have been edited and/or condensed by Successful Farming for style and clarity.