EPA Sets Record High Biofuel Blending Volumes

Progressive Farmer’s Todd Neeley reported that “the U.S. Environmental Protection Agency finalized 2026-2027 Renewable Fuel Standard volumes on Friday, setting biofuel volumes higher than proposed numbers released last year.”

“EPA set overall volumes to include reallocation of small-refinery exemptions at 26.81 billion gallons for 2026 and 27.02 billion gallons for 2027 — providing a 70% reallocation. Corn-based ethanol also maintains a 15-billion-gallon market in the final rule. The agency had been considering a range of SRE reallocations from zero to 100%, with biofuels and agriculture industries pushing for full reallocation,” Neeley reported. “‘This approach will balance a number of factors that come into play when considering volume requirements and the impacts of SREs, including protecting biofuel demand while maintaining a stable and functioning credit market,’ the EPA said in a news release on Friday.”

“Biomass-based diesel volumes for 2026 were set at 9.07 billion gallons and jump to 9.2 billion gallons in 2027. The advanced biofuels volumes were set at 11.1 billion gallons and 11.32 billion gallons for those years,” Neeley reported. “The new volumes represent a 60% increase over 2025 for both biodiesel and renewable diesel, according to EPA.”

“EPA also announced, starting in 2028, foreign fuels and feedstocks will receive half the RFS compliance value compared to American-made products, ‘providing American biofuel producers with time to prepare for the change while ensuring that American farmers benefit from the RFS program and American energy independence,’ the agency said,” Neeley reported.

Here is the big news from today’s RVO announcement:

“EPA is announcing that starting in 2028, foreign fuels and feedstocks will receive half the RFS compliance value compared to American-made products, providing American biofuel producers with time to prepare for the change… https://t.co/daEPXVoVQ0

— Scott Irwin (@ScottIrwinUI) March 27, 2026

Successful Farming’s Mariah Squire and Cassidy Walter reported that “Secretary of Agriculture Brooke Rollins said in a statement that the volumes are expected to increase net farm income by $3–4 billion. …In its press release, EPA estimated that biodiesel and renewable diesel production and use will need to increase by more than 60%, compared to 2025 volumes, to meet those historic volume levels. That will drive demand for U.S. soybean producers, the agency said.”

Refiners Says New Volumes Will Raise Gas Prices

Reuters’ Siddharth Cavale and Jarrett Renshaw reported that “the Trump administration ordered U.S. refiners ​on Friday to blend a record amount of biofuels into their gasoline and diesel this year and next, a move intended ‌to help farmers but that the refining industry said would only backfire by raising pump prices already spiking due to the war in Iran.”

“The rebuke from the U.S. refining industry revealed a rare public rift between President Donald Trump’s White House and oil companies that have traditionally backed his efforts to bolster the fossil-fuel energy sector,” Cavale and Renshaw reported. “‘It’s baffling, with ​fuel prices already rising due to the conflict in Iran, that EPA is finalizing a rule that will make things far worse for ​consumers,’ said Chet Thompson, president and CEO of the American Fuel & Petrochemical Manufacturers. ‘This is not what energy dominance looks ⁠like.'”

Ag Groups Have Largely Positive Reactions

Agri-Pulse’s Kim Chipman reported that “the Trump administration’s biofuel-blending rules are garnering praise, and some disappointment, from agriculture and renewable fuel groups, as well as mixed reviews from fossil fuel lobbying organizations.”

Reuters’ Cavale and Renshaw reported that “the National ⁠Corn Growers Association welcomed Friday’s announcement, along with a decision by the administration earlier this week to expand the seasonal availability of gasoline with 15% ethanol, saying it would help farmers. ‘Today’s announcement, coupled with the Trump administration’s E15 ​summertime waiver earlier this week, is a positive move for the nation’s corn growers who are navigating an ​exceptionally difficult economic environment,’ ⁠the group said in a statement.”

“The Renewable Fuels Association, which represents ethanol producers, said however it had wanted 100% of waived volumes to be reallocated, rather than 70%,” Cavale and Renshaw reported.

Chipman reported that Scott Metzger, American Soybean Association president and farmer from Ohio, said that “U.S. soybean farmers needed a win to boost domestic markets this year. The 2026-2027 RVOs will increase soybean oil use, boost U.S. soybean processing, and grow domestic biofuel markets for our crop. While the rule does not make immediate changes to prioritize domestically sourced biofuel feedstocks, ASA celebrated the EPA announcement to reduce credit generation for imported biofuels and biofuel feedstocks beginning in 2028. If maintained in the next RVOs, the credit reduction for imports will serve as a significant economic driver for the entire domestic biomass-based diesel value chain and will catalyze domestic demand for U.S. soy.”