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Monday, June 16, 2025

Surprise win for farmers: EPA's new biofuel blending mandates hit record highs

 In a move that surprised biofuel industry analysts and sent soybean prices skyrocketing by 25 cents, the Environmental Protection Agency (EPA) announced Friday its highest ever volume requirements for American grown biofuels in the Renewable Fuel Standard (RFS).

EPA’s renewable volume obligations (RVOs) proposal applies to 2026 and 2027, stipulating that the nation’s refiners must blend 15 billion gallons of conventional biofuels into the nation’s fuel blend for each plan year, and prioritizes domestically produced renewable fuels over imports,

The proposal includes:

  • 24.02 billion gallons (bg) for 2026, including 15 bg for conventional renewable fuels like corn ethanol and 9.02 bg for advanced biofuels — including 5.61 bg of biomass-based diesel and 1.3 bg of cellulosic biofuel.
  • 24.46 bg for 2027, of which 15 bg is conventional renewable fuel and 9.46 is advanced biofuel.

Michigan Farm Bureau Industry Relations Specialist Theresa Sisung said the improvements made in this proposal are very promising.

“Increasing renewable volume obligations and putting more of a focus on using domestically produced fuels are good news for farmers who will continue to provide feed, food and fuel to consumers,” she added.

The announcement was celebrated by Ag Secretary Brooke Rollins, who said President Donald J. Trump recognizes how important the RFS is for American corn and soybean farmers.

“This move by (EPA) Administrator Zeldin is the boldest proposal ever and will provide certainty in a much-needed market for our producers while delivering lower prices at the pump for consumers,” wrote Rollins, adding that USDA and EPA “have never been more aligned” on the need for more American grown biofuels.

Rollins said the RVOs sends a strong signal to the U.S. biofuels industry that Trump has the industyr’s backs and gives them the incentive to invest in American products for American consumers and to export around the world.

“America’s national security depends on our energy security, and biofuels are a crucial asset that brings more jobs and helps farmers in rural America,” Rollins added.

As the Trump administration expands the domestic market for biofuels, Rollins said USDA is working to break down tariff and non-tariff barriers for our American grown biofuels, adding that President Trump’s landmark deal with the U.K. secured zero tariff access for over $700 million in ethanol exports.

Renewable Fuels Association President Geoff Cooper said the proposed blending volumes provide crucial growth opportunities for U.S. ethanol producers and farmers, while boosting the supply of lower-cost, American-made energy.

“This proposal sends a very positive and powerful signal to U.S. renewable fuel producers and farmers,” Cooper said. “It represents an excellent starting point for the 2026 and 2027 RVO discussion.”

Growth Energy CEO Emily Skor called the proposed RVOs “an economic lifeline” for U.S. farmers and ethanol producers, and said it will unlock investments, create jobs, and support growth in rural America.

“Only biofuels can unlock the investments and jobs needed to strengthen the rural economy,” Skor said.

“We applaud President Trump and EPA Administrator Zeldin for keeping their promise to fight for farmers and create opportunities in rural communities that have too often been left behind.”

EPA will hold a virtual public hearing for the proposed rule on July 8.

https://www.michiganfarmnews.com/a-surprise-win-for-farmers-epa-s-new-biofuel-blending-mandates-hit-record-highs

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