EPA Finalizes Historic New Renewable Fuel Standards to Strengthen American Energy Security, Support Rural Economies
Rule sets balanced biofuels growth for 2026 and 2027, bolstering domestic oil and feedstock
March 27, 2026
WASHINGTON – Today at the White House Great American Agriculture Celebration, President Trump announced that U.S. Environmental Protection Agency (EPA) has finalized the historic Renewable Fuel Standard (RFS) “Set 2” final rule. The final rule realigns the program with Congress’ original intent—increasing the use of homegrown American biofuels—putting American farmers first and promoting American energy independence. In the 20th year of the RFS program, “Set 2” establishes the renewable fuel volume requirements for 2026 and 2027 at the highest levels in program history. EPA’s final rule demonstrates the Trump administration’s ongoing commitment to America’s farmers and unleashing American energy by reducing America’s reliance on foreign oil, delivering long-term certainty and stability for America’s farmers and biofuel producers, and ultimately creating a path for rural economies to boom.
“President Trump promised a Golden Age of American agriculture. Once again, his administration is delivering. Overall, ‘Set 2’ creates a larger, more stable, and more reliable domestic market for U.S. crops, strengthening farm income and rural economies,” said EPA Administrator Lee Zeldin. “For 20 years, this program has diversified our nation’s energy supply and advanced American energy independence. EPA is proud to deliver on this mission and to do so at historic levels.”
“Today’s announcement is truly historic for our nation’s farmers and energy producers. These numbers represent the highest levels of biofuels ever required to be blended into our fuel supply,” said U.S. Secretary of Agriculture Brooke L. Rollins. “With President Trump and Administrator Zeldin’s leadership, these historically high volumes are expected to create a $3 to $4 billion dollar increase in net farm income. The Renewable Fuel Standard Set 2 Rule will create a $31 billion dollar value for American corn and soybean oil for biofuel production in 2026, which is $2 billion more than in 2025. Our farmers are stepping up to grow American energy dominance.”
Under Administrator Zeldin’s leadership, the agency has been working tirelessly to further America’s energy independence and future, and these new requirements are another major step in that direction.
To meet the historic 2026 and 2027 volume levels, EPA estimates that biodiesel and renewable diesel production and use will need to increase by over 60 percent compared to 2025 volumes, the last year of the Biden-Harris administration’s “Set 1”. This in particular will drive renewed demand for American soybean producers. With the benefits “Set 2” will bring to America’s farmers, EPA estimates that the rule will generate over $10 billion for rural economies and create over 100,000 new jobs in the agricultural and manufacturing sectors. To provide continued certainty for American corn growers and ethanol producers, EPA will maintain the 15 billion conventional biofuel level for 2026 and 2027.
2026 and 2027 Renewable Fuel Volume Requirements, SRE Reallocation Volumes, and Total Applicable Volumes (billion RINs)
A key pillar of EPA’s Powering the Great American Comeback initiative is restoring American energy dominance. The Trump administration has made great strides on this during President Trump’s first year back in office and EPA, under Administrator Zeldin’s leadership, is proud to continue to deliver for the American people. The priority “Set 2” places on expanding the use of American-made ethanol, biodiesel, and renewable diesel in the marketplace will reduce the nation’s dependence on foreign oil by roughly 300,000 barrels of oil per day over 2026 and 2027.
Additionally, the Trump EPA is restoring the RFS program to align with the plain language of the Clean Air Act (CAA). Despite “electricity” never once being mentioned in the RFS CAA language, the Obama and Biden administrations set up the framework to turn the RFS program into a subsidy for electric vehicle (EV) charging stations as part of their efforts to force the electrification of the transportation sector. This manipulation of the CAA was not about helping farmers but rather furthering their out-of-touch political agenda of pushing EVs on every American. The Trump EPA has removed “renewable electricity” from the RFS program; once again taking action to end the efforts to push EVs onto the American people. In accordance with the RFS CAA language, which mentions liquid or gaseous fuels over fifty times, EPA has worked across the Trump administration to finalize a “Set 2” that puts our farmers and America first.
Last year, EPA took action on the backlog of Biden-era small refinery exemption (SRE) petitions and in September 2025 issued a supplemental proposed rulemaking to account for SRE decisions. Today, after considering relevant comments, data, and analyses received, EPA is also finalizing a 70 percent partial reallocation of the 2023–2025 exempted Renewable Volume Obligations for the 2026 and 2027 compliance years. 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.
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 while ensuring that American farmers benefit from the RFS program and American energy independence.
The “Set 2” rule supports President Trump’s broader economic vision of strengthening American energy independence, growing domestic agricultural markets, and fighting back against unfair trade practices. The final volume requirements for 2026 and 2027 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.
Learn more information on the “Set 2” Final Rule.
