The Environmental Protection Agency finalized its most aggressive biofuel mandates in program history, setting renewable fuel requirements for 2026 and 2027 that will force a dramatic expansion of the domestic biofuels industry while eliminating electric vehicle manufacturers’ pathway to compliance credits.
The final rule under the Renewable Fuel Standard (RFS) establishes renewable fuel volume requirements for 2026 and 2027 at the highest levels in program history, with biomass-based diesel mandates reaching 8.86 billion Renewable Identification Numbers (RINs) for 2026 and 8.95 billion for 2027. RINs are tradeable credits that track renewable fuel compliance under federal mandates.
To meet these volume levels, EPA estimates biodiesel and renewable diesel production and use will need to increase by over 60 percent compared to 2025 volumes.
President Trump announced the rule at a White House agriculture event, calling it a victory for American farmers and energy independence. “These numbers represent the highest levels of biofuels ever required to be blended into our fuel supply,” Trump stated during the announcement.
The rule’s most significant change removes renewable electricity from the Renewable Fuel Standard program entirely. EPA finalized the elimination of renewable electricity as a qualifying renewable fuel under the RFS program, ending the so-called eRINs pathway that would have allowed electric vehicle charging to generate compliance credits.
The Trump EPA stated it “removed renewable electricity from the RFS program; once again taking action to end the efforts to push EVs onto the American people.”
The elimination of eRINs will impact electricity-sector stakeholders that had anticipated benefits from an electricity pathway, particularly landfill gas producers, wastewater treatment operators, and electric vehicle manufacturers, who had pushed for eRIN implementation rules for over a decade.
The rule also includes a 70 percent reallocation of previously exempted volumes from Small Refinery Exemptions granted between 2023 and 2025. EPA is finalizing a 70 percent partial reallocation of the 2023-2025 exempted Renewable Volume Obligations for the 2026 and 2027 compliance years.
Industry reaction has been largely positive from agricultural groups but mixed from other sectors.
“ASA is grateful for the tireless efforts of EPA and USDA to ensure the soy biofuel value chain could benefit from the strongest RVOs ever finalized,” said Scott Metzger, American Soybean Association President and farmer from Ohio. “The 2026-2027 RVOs will increase soybean oil use, boost U.S. soybean processing, and grow domestic biofuel markets for our crop.”
“At a time when American consumers are looking for relief at the pump and hard-hit farmers are looking for new demand opportunities, we commend EPA Administrator Lee Zeldin and President Donald Trump for delivering robust RFS volume requirements for 2026 and 2027,” said Renewable Fuels Association President Geoff Cooper. “The final rule locks in the highest-ever renewable fuel volume obligations and provides clarity for farmers, ethanol producers, oil refiners, and fuel distributors alike.”
However, some biogas industry representatives criticized the rule’s approach.
“EPA’s final rule fails to represent real-world biogas growth, which will constrain markets,” said American Biogas Council Executive Director Patrick Serfass. “The action especially undercuts opportunities for livestock farmers, impeding one of the most reliable ways farmers can keep pace in a low-margin agriculture industry.”
The renewable natural gas sector offered more measured support.
“The final rule is certainly an improvement over the agency’s proposal,” said Johannes Escudero, founder and CEO of the RNG Coalition. “The RNG Coalition will continue to urge EPA to administer a growth-oriented program as envisioned by Congress.”
Oil refiners, who must purchase RINs to comply with the mandates if they don’t blend sufficient renewable fuels, have historically opposed volume increases, arguing they drive up compliance costs that are passed to consumers. The American Petroleum Institute has not yet released a statement on the final rule.
Environmental groups have expressed concern that higher biofuel mandates could increase pressure on agricultural land use and potentially conflict with climate goals, though major environmental organizations have not yet issued formal responses to the rule.
The final rule represents a significant shift from the Biden administration’s approach to renewable fuels, which had sought to include electric vehicles in the program while maintaining more modest volume growth projections.
According to EPA’s regulatory impact analysis, the agency projects the rule will generate economic benefits for rural communities and create jobs in the agricultural and manufacturing sectors, though specific figures for job creation and economic impact were not immediately available in the final rule documentation.
The mandates take effect for the 2026 compliance year, giving fuel producers and blenders time to adjust their operations to meet the higher volume requirements. Companies that cannot meet their obligations through physical blending must purchase RINs from those who exceed their requirements.