On April 1, 2026, the U.S. Environmental Protection Agency (EPA) issued its final rule for the Renewable Fuel Standard (RFS) “Set 2” program. The rule sets legally required volumes of renewable fuel that must be blended into the U.S. fuel supply for both 2026 and 2027. EPA describes the requirements as the highest in the 20-year history of the program.
The announcement was made by President Trump at the White House Great American Agriculture Celebration on March 27, 2026. EPA Administrator Lee Zeldin called the rule historic and said it puts American farmers first by reducing reliance on foreign oil. Secretary of Agriculture Brooke L. Rollins added that the rule is expected to create a $31 billion value for American corn and soybean oil in biofuel production in 2026 alone, $2 billion more than in 2025.
What does the RFS Set 2 rule require?
The rule sets volume requirements for four categories of renewable fuel: cellulosic biofuel, biomass-based diesel (BBD), advanced biofuel, and total renewable fuel. To meet the new 2026 and 2027 targets, EPA estimates that biodiesel and renewable diesel production must increase by more than 60 percent compared to 2025 levels. This sharp increase will drive renewed demand for American soybean producers, who supply the oil used to produce these fuels.
For corn growers and ethanol producers, the rule maintains the 15 billion conventional biofuel level for both 2026 and 2027. This gives producers the market certainty they need to plan ahead. Furthermore, EPA is partially waiving the 2025 cellulosic biofuel volume requirement due to a shortfall in domestic production, and it is also finalizing a 70 percent partial reallocation of exempted renewable volume obligations for 2026 and 2027.
The final rule will take effect on June 15, 2026, with select provisions going into effect earlier, on April 28, 2026. One additional provision, covering a specific technical amendment, will not take effect until January 1, 2027. For context on how biofuel policies affect crop markets, Agroinformacion’s cereals section tracks grain market developments in Europe and globally.
What are the projected economic benefits?
EPA estimates the rule will generate over $10 billion for rural economies and create more than 100,000 new jobs across the agricultural and manufacturing sectors. The increase in net farm income is projected at $3 billion to $4 billion. In total, the rule is designed to strengthen the economic position of American corn and soybean growers, oilseed processors, and biodiesel and renewable diesel producers.
Additionally, EPA projects the rule will reduce U.S. dependence on foreign oil by roughly 300,000 barrels per day over 2026 and 2027 combined. This reduction in oil imports is a central goal of the Trump administration’s broader energy strategy. The U.S. Energy Information Administration has previously documented how soybean oil’s share of biodiesel feedstock has grown significantly over the past decade, making this rule especially consequential for soy markets.
What else does the rule change?
One notable change in Set 2 is the removal of renewable electricity as a qualifying fuel under the RFS program. Previous administrations had created a framework that would have allowed electric vehicle charging stations to generate RFS compliance credits. EPA states this approach was inconsistent with the plain language of the Clean Air Act, which refers to liquid or gaseous fuels more than 50 times and never mentions electricity.
Also new in Set 2, starting in 2028, foreign fuels and feedstocks will receive only half the RFS compliance value compared to domestically produced products. EPA says this change gives American biofuel producers time to prepare while ensuring U.S. farmers, rather than foreign suppliers, are the primary beneficiaries of the program going forward.
The full text of the final rule was published in the Federal Register on April 1, 2026, and the official EPA press release was published on EPA.gov on March 27, 2026.