Overview
- President Donald Trump announced at the White House that the EPA finalized the Renewable Fuel Standard “Set 2” rule, which sets how much renewable fuel must be used in U.S. gasoline and diesel.
- The rule lifts total Renewable Identification Number targets to 25.82 billion in 2026 and 25.98 billion in 2027, up from 22.33 billion in 2025, and the EPA estimates a $31 billion value for corn and soybean oil in 2026; RINs are tradable credits that track each ethanol‑equivalent gallon blended.
- EPA set a 70% reallocation of volumes lost to small refinery exemptions issued from 2023 to 2025, which restores part of the blending shortfall those waivers created.
- Beginning in 2028, foreign biofuels and feedstocks will earn only 50% of the credit granted to domestic sources, a design meant to push new investment toward U.S. producers.
- Farm groups backed the higher targets but said exempted volumes are not fully restored, while refiners warned the rule raises compliance costs and could lift pump prices; earlier this week EPA issued emergency waivers for higher‑ethanol summer blends, the White House is pressing Congress for year‑round E15, and the agency will now start work on a follow‑on 'Set 3' rule.