The Environmental Protection Agency (EPA) has proposed a record increase in the Renewable Fuels Standard for biomass-based diesel. The agency proposed setting blending mandates at 5.61 billion gallons for 2026 and 5.86 billion gallons for 2027. This is a 67% increase from 2025.

These levels surpass industry recommendations and represent a significant jump from the 2025 mandate of 3.35 billion gallons. Kurt Kovarik of Clean Fuels Alliance America highlighted the proposal as a strong acknowledgment of industry investments in feedstock development and production capacity, particularly by soybean farmers.

To support domestic production, the EPA will discount Renewable Identification Number (RIN) credits by 50% for imported biofuels or those made with foreign feedstocks. This includes those from Canada and Mexico. This aims to level the playing field for U.S. producers.

While the EPA has not yet addressed the backlog of 169 Small Refinery Exemptions, it has signaled a move toward reallocating those volumes to prevent biofuel producers from being negatively impacted.

The mandate for conventional corn-based ethanol remains steady at 15 billion gallons. This aligns with industry recommendations.

The proposal is open for public comment and is expected to be finalized by November 1.

Read more about the proposed biomass blended diesel mandates here.