The US Environmental Protection Agency (EPA) has issued its highest ever biofuel quotas for 2026 and 2027, in a bid to boost domestic oil and feedstock.
US President Donald Trump announced on 27 March that the EPA had finalised the Renewable Fuel Standard (RFS) “Set 2” final rule.
The final rule sets the biomass-based diesel quota at record volumes, while also accounting for 70% of waived gallons from 2023-2025 small refinery exemptions (SREs).
The EPA said the final volume requirements for 2026 and 2027 would protect investments made by US corn and soyabean growers, oilseed processors, and biodiesel and renewable diesel producers.
“Set 2 creates a larger, more stable and more reliable domestic market for US crops, strengthening farm income and rural economies,” said EPA administrator Lee Zeldin.
To meet the historic 2026 and 2027 volume levels, the EPA estimated that biodiesel and renewable diesel production and use would need to increase by over 60% compared to 2025 volumes, the last year of the Biden-Harris administration’s “Set 1”.
The move would drive renewed demand for US soyabean producers and generate over US$10bn for rural economies, according to the EPA.
“These historically high volumes are expected to create a US$3-$4bn dollar increase in net farm income,” said US Secretary of Agriculture Brooke L Rollins.
“The RFS Set 2 Rule will create a US$31bn dollar value for American corn and soyabean oil for biofuel production in 2026, which is US$2bn more than in 2025.”
In a statement on 27 March, the National Oilseed Processors Association (NOPA) welcomed the 2026-2027 Renewable Volume Obligations (RVOs), saying it delivered support for rural America, domestic manufacturing and the biofuels sector.
“The historic volumes for biomass-based diesel, the 70% re-allocation of waived gallons and the commitment to account for SREs on a go-forward basis restores programme integrity and puts the RFS back on a growth trajectory,” said Devin Mogler, president and CEO of NOPA. “The finalised RVOs provide the certainty that oilseed processors, biofuel producers and the broader agricultural value chain need.”
The US Canola Association (USCA) also welcomed the new quotas, saying the move provided continued growth opportunities for US canola farmers and the broader biofuels value chain.
The EPA also announced that from 2028, foreign fuels and feedstocks would receive half the RFS compliance value compared to American-made products, providing US biofuel producers with time to prepare for the change while ensuring that American farmers benefit from the RFS programme and American energy independence.
NOPA also welcomed the move to address imports of finished fuels and feedstocks.
“This provision is critical to ensuring that the benefits of the RFS flow first and foremost to American farmers and domestic producers,” NOPA said.
