Boom! EPA proposes shocking, welcome increases to US renewable fuel volumes

In Washington, the US Environmental Protection Agency announced a proposed rule to establish required Renewable Fuel Standard volumes and percentage standards for 2026 and 2027, as well as to partially waive the 2025 cellulosic biofuel volume requirement and revise the associated percentage standard due to a shortfall in cellulosic biofuel production.

The proposed volume requirements are listed below.

a One RIN is equivalent to one ethanol-equivalent gallon of renewable fuel.

EPA is also proposing several regulatory changes to the RFS program, including reducing the number of Renewable Identification Numbers (RINs) generated for imported renewable fuel and renewable fuel produced from foreign feedstocks and removing renewable electricity as a qualifying renewable fuel under the RFS program (eRINs).

Public Hearing

EPA will hold a virtual public hearing on July 8, 2025, for the proposed rule. An additional session will be held on July 9, 2025, if necessary, to accommodate the number of testifiers that sign-up to testify. This hearing will be held virtually-only (i.e., there will be no in-person hearing). All attendees (including those who will not be presenting verbal testimony) must register by sending an email at RFS-Hearing@epa.gov.

The rule does not include a specific estimate of gasoline and diesel gallons produced by small refineries that will be exempted from the program in 2026 and 2027 – though it proposes a range. Including an estimate in the RVO formula will ensure that the biomass-based diesel volumes set by EPA in this rule are not unintentionally reduced by future small refinery exemptions.

Reaction from the Stakeholders

Mike McAdams, president of the Advanced Biofuels Association set the stage for industry reaction. He said, “The EPA’s initial proposal correctly recognizes that global feedstock supply and U.S. production capacity are more than sufficient to support a robust RVO, including at least 7.12 billion RINs of biomass-based diesel in 2026 (5.61 billion gallons) and 7.50 (5.86 billion gallons) in 2027. Strong RVOs are essential to diversifying the nation’s fuel supply, supporting rural economic development, lowering costs for consumers and businesses, and reinforcing America’s competitive edge in energy innovation. This proposal makes clear that the EPA understands the critical role advanced biofuels can play in their broader energy dominance strategy, and our industry is elated at this development.”  

U.S. Sen. Chuck Grassley (R-Iowa) added, “Under the Biden administration, five biodiesel plants in Iowa closed or idled in part because RVOs were set too low. Today, President Trump and Administrator Zeldin turned the ship around, delivering a victory for American energy security and following through on their promise to support American agriculture. Biofuels lower gas prices, strengthen national security and drive economic growth in rural communities. Today’s announcement is welcome news for Iowa farmers and biofuel producers.”

U.S. Senator Deb Fischer (R-Neb.) noted, “The EPA’s newly proposed rule rightly recognizes the vital role America’s farmers and biofuel producers play in strengthening our energy independence. Setting the conventional volume for fuels like ethanol at 15 billion gallons and boosting biomass-based diesel well above expectations is a strong win for Nebraska and the rest of rural America. I thank the administration for their continued commitment to agriculture and biofuels – their leadership supports Nebraska’s corn, soybean, and biofuel industries. I look forward to working with them to ensure these promising proposals are finalized and fully implemented.”

Grant Kimberley, executive director of the Iowa Biodiesel Board, issued the following statement: “While this proposal has some significant program changes that will require further study for us to better understand, overall it reflects the strength, resilience and growth potential of America’s biodiesel industry. The volumes signal real opportunity for domestic producers, especially here in Iowa, and we appreciate the EPA’s recognition of what this industry is capable of delivering.

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 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.

Joshua Shields, POET’s Senior Vice President of Corporate Communications added, “Today’s announcement from the EPA should provide much-needed, long-awaited certainty to our farmers and biofuel producers. This proposal makes clear that the EPA understands the critical role advanced biofuels can play in their broader energy dominance strategy, and our industry is elated at this development.”

The Bottom Line

Around the world for lovers of literature, June 16th is known as Bloomsday, the day upon which the James Joyce novel Ulysses is set — this year, we might have to call it Boomsday.

It’s a historic win across the board for the US biofuels industry. The 15 billion gallons of ethanol are intact, a strong increase in biomass-based diesel, long overdue, and a proposed elimination of e-RINS for electric vehicles.

We also note that all of these changes and strong supports for advanced had long been sought by industry, and it clarifies where, lo these many years, the hold-ups have been ‚— clearly if the data supports strong increases this year, they supported strong increases in years past, and the responsibility not to follow the hard data lies with the executive officer of the United States, the President.

Many in the renewable fuels industry opposed the return of the GOP to power and in particular the return of President Trump. The outcomes suggest that the GOP has delivered something for advanced biofuels that Democratic administrations, presumably in their zeal for electrifying the fleet, have never done and would not do. Electric vehicles are still available for those who wish to drive them, but the strong domestic energy and rural revival, combined with the emissions profile of advanced fuels, has finally won the round. Is it game, set, match? Hardly. Boxing is rounds, and energy policymaking is boxing.

However, good news for the industry such as it has not seen in many years, is at hand. The coalition of farm-state lawmakers, crossing party lines, has prevailed. Even 45Z tax credits are still alive, as of this date. Truly, a historic opportunity for advanced renewable fuels — an opportunity that must not be missed.

Let the boom begin.<