The US Environmental Protection Agency (EPA) has finalised its Renewable Fuel Standard “Set 2” rule for 2026 and 2027, establishing the highest renewable fuel volume requirements in the programme’s history.
The announcement is being viewed as one of the most significant policy developments for biodiesel, renewable diesel and broader biofuel markets in recent years.
EPA says the new requirements will increase support for domestically produced renewable fuels while reducing dependence on imported energy sources. The agency estimates biodiesel and renewable diesel production and use will need to increase by more than 60% over 2025 levels to meet the new targets.
The rule establishes record renewable fuel obligations for both 2026 and 2027 and is expected to create substantial additional demand for agricultural feedstocks, particularly soybean oil. US officials estimate the policy could generate billions of dollars in additional farm income and support thousands of jobs across rural communities.
Industry stakeholders have generally welcomed the stronger volumes, highlighting the opportunities for biodiesel producers and farmers. However, some observers caution that production capacity, feedstock availability and logistics infrastructure will need to expand rapidly if the industry is to meet the new requirements.
Regardless of the challenges, the final rule sends a strong signal regarding the future role of biodiesel and advanced biofuels within the US energy mix. It also reinforces governmental support for renewable fuel production as a component of energy security, rural development and emissions reductio
EPA finalises record renewable fuel standards for biodiesel growth
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