EPA launches proposed record RVO for 2026 and 2027

In Washington, the U.S. Environmental Protection Agency (EPA) announced on Friday a major step forward to strengthen American energy security and support American farmers by proposing Renewable Fuel Standard (RFS) volume requirements for 2026 and 2027. This action represents a critical and much-needed step in the evolution of this program. This is the 20th anniversary of the RFS program. Under President Trump’s leadership, EPA’s “Set 2” proposal ensures the RFS program remains true to Congress’ original intent of increasing the use of homegrown American biofuels, unleashing American energy, and supporting rural economies.

Historically, the RFS was a “one dial” system, where the only changes to the program were increasing or decreasing volumes. Today, EPA is proposing a second dial that relates to the value of a RIN based whether the biofuel is from domestic or foreign sources. Specifically, foreign biofuels and feedstocks are only being provided 50 percent of the value relative to domestic biofuels and feedstocks.

The proposed rule strengthens U.S. energy security by reducing reliance on foreign sources of oil by roughly 150,000 barrels of oil per day over the time frame of the Set 2 rule, 2026 and 2027. Additionally, in 2024, about 45 percent of biomass-based diesel (BBD) feedstock and finished fuel came from foreign sources. By reducing the value of the RIN for foreign biofuels and feedstocks, it will decrease America’s reliance on these imports, promote U.S. production, and increase American energy security.

The Set 2 Rule proposes the biofuel volume requirements and associated percentage standards for cellulosic biofuel, biomass-based diesel (BBD), advanced biofuel, and total renewable fuel for 2026 and 2027.