Proposal meets the industry’s expected biomass-based diesel volume of 5.25 billion gallons for 2026Proposal exceeds industry’s expected BBD volumes but program changes will require careful evaluation
Today, Clean Fuels Alliance America thanked EPA Administrator Lee Zeldin for releasing the overdue proposed rule to set 2026 and 2027 Renewable Fuel Standard volumes and taking action to get the program back on schedule. Clean Fuels along with trade associations representing farmers, feedstock providers, and fuel marketers unified in advocating a biomass-based diesel volume of no less than 5.25 billion gallons for 2026 and are pleased to see the robust step-change in proposed volumes and obligation percentages. Clean Fuels welcomes the opportunity to carefully evaluate the proposed program changes, which include setting biomass-based diesel volumes in RIN equivalence.
EPA’s proposal makes a much-needed step-change in biomass-based diesel volumes for both 2026 and 2027. At the same time, EPA proposes to change the RIN generation values of imported fuel and U.S. fuel made from imported feedstock. Clean Fuels looks forward to carefully evaluating this proposal and its potential impacts on the market.
| (billion RINs) | BBD | Overall Advanced |
| 2026 | 7.12 | 9.02 |
| 2027 | 7.5 | 9.46 |
Kurt Kovarik, Clean Fuels’ Vice President of Federal Affairs, stated, “Today’s RFS proposal is a welcome and timely signal to U.S. biodiesel, renewable diesel and SAF producers as well as America’s farmers and agricultural businesses. The industry has made major investments in domestic production capacity and feedstocks to meet America’s energy needs and provide consumers affordable, cleaner fuels. We anticipate this will have a tremendous beneficial impact for American farmers and agricultural communities and we look forward to working with President Trump and EPA Administrator Zeldin to finalize this rule and fully unleash U.S. clean fuel producers.
“Our industry supplied more than 5 billion gallons of biodiesel, renewable diesel and SAF to the U.S. market in 2024, and is poised to deliver more in 2026. The U.S. biomass-based diesel industry supports 107,400 jobs and generates $42.4 billion in economic activity. Continued market growth and stability through the RFS will enable more economic opportunities, create more jobs, and revitalize America’s agricultural sector.”
The rule does not include a specific estimate of gasoline and diesel gallons produced by small refineries that will be exempted from the program in 2026 and 2027 – though it proposes a range. Including an estimate in the RVO formula will ensure that the biomass-based diesel volumes set by EPA in this rule are not unintentionally reduced by future small refinery exemptions.
Kovarik concluded, “We appreciate Administrator Zeldin’s commitment to find effective solutions to the remaining backlog of small refinery exemptions. We look forward to working with him to ensure that those solutions do not erode the U.S. market for biomass-based diesel and harm American farmers and consumers.”
