President Donald Trump and Environmental Protection Agency Administrator Lee Zeldin finalized long-awaited biofuel blending standards Friday aimed at supporting U.S. farmers.
At a White House event with farmers and ranchers, Trump announced the EPA had finalized its Renewable Fuel Standard (RFS) “Set 2” requirements.
The RFS, established under the Clean Air Act, requires transportation fuel to contain an increasing volume of renewable fuel, a policy justified as reducing emissions. The program is key for farmers, as it creates a market for corn- and soy-based ethanol fuel. It has strong support from lawmakers in corn-producing states such as Iowa. Its implementation, though, has long been challenged by oil refiners, who face higher costs from the mandate.
“Overall, ‘Set 2’ creates a larger, more stable, and more reliable domestic market for U.S. crops, strengthening farm income and rural economies,” EPA Administrator Lee Zeldin said in a statement. “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.”
According to the EPA, the rule would create a $31 billion value for corn and soybean oil for biofuel production in 2026. The rule will apply to 2026 and 2027.
The agency’s final rule would raise the total requirement to 25.82 billion Renewable Identification Numbers for 2026 and 25.98 billion for 2027, up from 22.33 billion in 2025. One RIN represents one ethanol-equivalent gallon of renewable fuel.
The EPA said that starting in 2028, foreign biofuels and feedstock will get only 50% of credit given to domestic sources, a provision that favors domestic farmers and biofuel producers. Refiners have relied on foreign biofuel and feedstock supplies due to insufficient domestic supply.
The EPA said the rule would give domestic biofuel producers time to prepare for the change, while supporting farmers.
Zeldin said this week at Agri-Pulse’s Ag & Food Policy Summit that, after finalizing RFS Set 2, the agency will immediately begin working on the third set.
“We want to ensure that all of you have a certain level of certainty and predictability, where you know where we’re going by that next deadline that is in front of us, as opposed to just assuming or worrying with great frustration that the next deadline is going to come and go,” he said.
In addition, the EPA finalized a 70% reallocation of renewable fuel volumes lost to small refinery exemptions issued between 2023 and 2025. SREs allow for refineries to be exempt from fuel blending obligations due to economic hardship.
The Renewable Fuels Association said it supports the rule but that the measure falls short of fully restoring the exempted volumes.
In a statement, RFA President and CEO Geoff Cooper called exemptions “completely unjustified,” adding that they “distort the market, undermine fair competition, and destabilize the RFS program.”
“While RFA appreciates EPA’s efforts to minimize market disruptions by reallocating most of the renewable volume lost to SREs, we believe the Agency has a duty to fully restore all exempted volumes,” Cooper said.
But American Fuel & Petrochemical Manufacturers President and CEO Chet Thompson called the EPA’s rule “baffling” in a statement, arguing it would result in “all-time records” in compliance costs.
“It’s baffling, with fuel prices already rising due to the conflict in Iran, that EPA is finalizing a rule that will make things far worse for consumers,” Thompson said. “The RFS already costs nearly 25-cents per gallon, and today’s rule will undoubtedly add tens of billions more. This is not what energy dominance looks like.”
The administration has been urgently looking for ways to ease rising fuel costs, as oil and gas prices have been driven up by the war in Iran. Earlier this week, the EPA issued emergency waivers allowing for the sale of higher-ethanol gasoline blends ahead of the summer travel to help ease rising fuel prices.
EPA ALLOWS SALE OF HIGHER-ETHANOL BLENDS TO LOWER PRICES FOR SUMMER DRIVING
The president told farmers that he is seeking congressional action to allow for year-round E15 sales, which is being negotiated in the House after a provision failed to make it in the most recent spending bill.
Trump said he trusts House Speaker Mike Johnson (R-LA) and Senate Majority Leader Sen. John Thune (R-SD) will find a deal that works for farmers, consumers, and refiners.
