Last week, the White House announced that the EPA has finalized the Renewable Fuel Standard "Set 2" rule for 2026-2027, setting the highest renewable fuel volume requirements in the program’s 20-year history. For years, the biofuels market had struggled to find its footing, as delayed rules caused sustained uncertainty over final obligations, exacerbated by continued abuse of the small refinery exemption (SRE). This rule changes all that.

The EPA projects that meeting the new requirements will require more than a 60% increase in biodiesel and renewable diesel production and use compared to 2025 levels. This could be a turning point for our industry, one that will support meaningful growth for renewable fuels over the next several years. Not only does the RFS support biofuel producers across the country, but it also helps the industry live up to our promise to deliver cleaner, more affordable heating fuels.

This outcome is a meaningful victory for the heating fuels industry and reflects the sustained advocacy of NEFI and our partners, including the Clean Fuels Alliance, throughout the rulemaking process. NEFI submitted formal comments advocating for robust volume requirements, and President and CEO Jim Collura provided personal testimony before the agency. Together, we have long championed higher RFS volumes and broader biofuel adoption across the liquid fuels marketplace, and this administration's final rule affirms the critical role biofuels play in American agriculture, rural economies, and the long-term competitiveness of the heating fuels sector.

"We applaud the Trump Administration’s strong commitment to renewable liquid heating fuels, American farmers and biofuel producers, and a more competitive future for our mostly family-run heating fuel businesses," said NEFI President and CEO Jim Collura. "These policies help ensure our industry can continue investing, innovating, and delivering affordable, reliable and cleaner fuels to American consumers."

The rule also addresses the longstanding backlog of small refinery exemption petitions from the Biden era, finalizing a 70% partial reallocation of exempted Renewable Volume Obligations from 2023–2025 across the 2026 and 2027 compliance years.

In addition, beginning in 2028, fuels produced from foreign feedstocks will receive half the RIN value of domestically produced fuels. This provision does not take effect for nearly two years and has no bearing on the record-high volume obligations in the final rule. NEFI and our partners will continue to monitor implementation and engage with policymakers well before this policy goes into effect.

Our regulatory counsel is currently reviewing the full rule, which runs nearly 400 pages. We will follow up with a more detailed analysis in the coming days.