EPA to Expand Production of American-Made Renewable Fuel

The Environmental Protection Agency has proposed new Renewable Fuel Standard (RFS) volume requirements for 2026 and 2027 that are expected to strengthen national energy security, support farmers, and expand the production of domestic fuels, the agency said in a June 13 statement.

RFS is a national policy requiring a certain volume of renewable fuel to be blended into transportation fuel, heating fuel, or jet fuel. This lowers the use of fossil fuels, while also creating a stable market for farmers who supply the produce, which is eventually converted to renewable biofuels such as ethanol. The EPA is tasked with setting the RFS standards.

In 2025, 22.33 billion ethanol-equivalent gallons of renewable fuel were required to be blended into transportation fuels. For 2026 and 2027, the EPA is proposing to raise the volumes to 24.02 and 24.46 billion gallons, up 7.5 and 9.5 percent, respectively, from 2025 levels.

Once finalized, these would be the highest-ever RFS volume requirements, according to the EPA.

“The proposal supports President Trump’s broader economic vision of strengthening American energy independence, growing domestic agricultural markets, and fighting back against unfair trade practices,” the agency stated.

“These volume requirements, if finalized, 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.”

In addition to higher volume requirements, the EPA is proposing policy changes aimed at cutting down America’s reliance on imported biofuels and feedstocks, while promoting domestic production.

The EPA is also seeking to remove electricity as a qualifying renewable fuel under the RFS program, which it said furthers President Donald Trump’s goal of “eliminating the electric vehicle (EV) mandate.”

Lee Zeldin, EPA Administrator, said the agency was “creating a new system that benefits American farmers while mitigating the impact on gas prices and ensuring the continued existence of liquid fuels.”

“We can no longer afford to continue with the same system where Americans pay for foreign competitors.”

The Iowa Renewable Fuels Association welcomed the proposal in a June 13 statement.

Monte Shaw, executive director of the association, called the EPA decision a “very strong starting point” for further discussions on the matter.

The EPA said it plans on holding a virtual public hearing on July 8 on the proposed rule, which could extend into July 9, if necessary.

Impact on Domestic Economy

The American Biogas Council (ABC) criticized the EPA proposal in a June 13 statement.

“The ABC is disappointed by EPA’s proposal, which reduces the growth of cellulosic biofuels under the RFS,” said executive director Patrick Serfass. Cellulosic biofuel sources include various types of waste from the agriculture, farming, and forestry sectors.

EPA’s proposal to boost RFS volume requirements included a reduction in cellulosic biofuels volumes from 1.38 gallons this year, to 1.30 gallons in 2026. Even though the volume rises to 1.36 billion gallons in 2027, it is still lower than 2025.

“This proposal is not a win for all farmers. In particular, dairy and other livestock farmers are the most harmed. The RFS supports these communities through steady income generated from converting their waste to renewable fuel,” Serfass said.

In a June 13 statement, Secretary of Agriculture Brooke L. Rollins praised EPA’s latest RFS proposal, calling it a bold move that will “provide certainty in a much-needed market for our producers while delivering lower prices at the pump for consumers.”

The proposal “sends a strong signal to the U.S. biofuels industry that President Trump has their backs and gives them the incentive to invest in American products for American consumers and to export around the world,” she said.

“America’s national security depends on our energy security, and biofuels are a crucial asset that brings more jobs.”

During remarks at the International Fuel Ethanol Workshop and Expo in Omaha on Tuesday, Geoff Cooper, CEO of the Renewable Fuels Association, highlighted the importance of ethanol for America’s energy independence and the country’s rural farmers, according to a June 10 post by the association.

“If there was ever an energy sector that needs to be let off the leash and allowed to run free, it is today’s ethanol industry,” he said. “For far too long, bureaucratic barriers, regulatory indecision, and policy uncertainty have been holding the U.S. ethanol industry back and preventing us from reaching our full potential.”

“The industry could be doing so much more: More to deliver lower-cost, cleaner-burning fuel to consumers around the world. More to expand into new markets like aviation and maritime, and other heavy-duty uses. And more to stimulate demand for America’s farmers.”

Cooper highlighted some of the challenges ahead for growing American ethanol production, including securing higher RFS standards for next year and beyond, as well as removing trade barriers and securing expanded market access for U.S. ethanol exports.