The U.S. Environmental Protection Agency (EPA) has finalized biomass-based diesel volumes under the Renewable Fuel Standard (RFS) for 2026 and 2027, establishing requirements intended to provide greater certainty across the biodiesel and renewable diesel value chain. The rule is expected to impact fuel producers, farmers, feedstock suppliers, and processors.
For 2026, EPA set volumes requiring just over 6 billion gallons of biomass-based diesel, exceeding the industry’s prior request of 5.25 billion gallons. The finalized volumes follow a period of market uncertainty in 2025, during which U.S. biodiesel production declined by approximately one-third compared to 2024.
According to Clean Fuels Alliance America, the updated rule reflects current production capacity and feedstock availability. The U.S. clean fuels industry has developed the capacity to produce up to 7 billion gallons annually, while soybean processing capacity has expanded to approximately 2.7 billion bushels. The EPA estimates the rule could generate approximately $10 billion in economic activity and support over 100,000 jobs, with a significant share attributed to the biomass-based diesel sector.
“We’re supporting biodiesel because it supports rural America, it supports our bottom-line and it provides cleaner air for our communities,” North Dakota soybean farmer Ryan Pederson told Clean Fuels Alliance America. “As American farmers, the value of what we can now produce is much higher than it was ten, twenty, thirty years ago.”
The finalized RFS volumes represent a key policy update for the clean fuels sector, following a year of ongoing adjustments across fuel production and agricultural markets. The rule is expected to influence production planning, feedstock demand, and long-term investment decisions as the industry evaluates future growth opportunities.
(Photo via Clean Fuels Alliance America)