US EPA finalizes renewable fuels volumes for 2026-2027
2 April 2026
The US Environmental Protection Agency (EPA) finalized the Renewable Fuel Standard (RFS) “Set 2” final rule and the renewable fuel volume obligations for 2026 and 2027.
The advanced biofuel volumes, which include biodiesel and renewable diesel, are significant increases over the volumes established in the prior “Set 1” rule. To meet the 2026 and 2027 volume levels, the EPA estimates that biodiesel and renewable diesel production and use will need to increase by over 60% compared to 2025 volumes, the last year of the “Set 1” regulation. This in particular will drive renewed demand for American soybean producers, according to the EPA.
| RFS Standard | Volume Requirement | SRE Reallocation Volume | Total Applicable Volume | ||||
|---|---|---|---|---|---|---|---|
| 2025 | 2026 | 2027 | 2026 | 2027 | 2026 | 2027 | |
| Cellulosic biofuel | 1.21 | 1.36 | 1.43 | 0 | 0 | 1.36 | 1.43 |
| Biomass-based diesel | n/a | 8.86 | 8.95 | 0.21 | 0.25 | 9.07 | 9.20 |
| Advanced biofuel | n/a | 10.82 | 10.98 | 0.28 | 0.34 | 11.10 | 11.32 |
| Renewable fuel | n/a | 25.82 | 25.98 | 0.99 | 1.04 | 26.81 | 27.02 |
| Note: All volumes in billion RINs. One RIN is equivalent to one ethanol-equivalent gallon of renewable fuel. | |||||||
The EPA said it will maintain the 15 billion conventional biofuel level for 2026 and 2027 to provide continued certainty for American corn growers and ethanol producers.
Last year, the EPA took action on the backlog of small refinery exemption (SRE) petitions and in September 2025 issued a supplemental proposed rulemaking to account for SRE decisions. As part of the “Set 2” rule, the EPA has finalized a 70% partial reallocation of the 2023–2025 exempted Renewable Volume Obligations into the 2026 and 2027 standards.
The EPA has announced that starting in 2028 (“Set 3”), foreign fuels and feedstocks will receive half the RFS compliance value compared to American-made products. The EPA has also partially waived the 2025 cellulosic biofuel volume requirement and revised the associated percentage standard due to a shortfall in cellulosic biofuel production.
Amiong other regulatory changes to the RFS program, the EPA has removed renewable electricity as a qualifying renewable fuel under the RFS program (eRINs).
Source: US EPA