The U.S. Environmental Protection Agency announced on June 20 that it has finalized the Renewable Fuel Standard (RFS) "Set 2" rule, establishing new renewable fuel volume requirements for 2026 and 2027 at the highest levels in the program’s history.
According to EPA Administrator Lee Zeldin, "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. 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."
U.S. Secretary of Agriculture Brooke L. Rollins said, "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. 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."
The EPA estimates that biodiesel and renewable diesel production will need to increase by over 60 percent compared to volumes from the previous administration's "Set 1" period ending in 2025. The agency also projects that the rule will generate over $10 billion for rural economies and create over 100,000 new jobs in agricultural and manufacturing sectors.
The finalized rule maintains the conventional biofuel level at 15 billion gallons for both years while introducing changes such as removing "renewable electricity" from RFS eligibility—aligning with Clean Air Act language—and partially reallocating previously exempted Renewable Volume Obligations from small refinery exemptions.
Starting in 2028, foreign fuels and feedstocks will receive half the RFS compliance value compared to American-made products under this rule change. More information can be found on the official roster page.
