EPA Finalises 2026–2027 RFS: Biomass-Based Diesel at 9.07 Billion RINs, Imports Discounted from 2028

Washington — The US Environmental Protection Agency (EPA) on Friday, 27 March 2026, finalised Renewable Fuel Standard (RFS) volume obligations for 2026 and 2027. For biomass-based diesel (biodiesel and renewable diesel), total obligations were set at 9.07 billion RINs in 2026 and 9.20 billion RINs in 2027, including volumes reallocated from small refinery exemptions. EPA also said that from 2028, foreign fuels and feedstocks will receive only half the RFS compliance value of American products.

According to EPA, as cited by DTN, the biodiesel and renewable diesel volumes in the rule are about 60% above 2025 levels. Total renewable fuel obligations reach 26.81 billion RINs in 2026 and 27.02 billion RINs in 2027, while conventional biofuel (corn ethanol) stays at 15 billion.

Final volumes

One RIN (renewable identification number) equals one ethanol-equivalent gallon. EPA's figures (billion RINs):

Category	2026 (base)	2027 (base)	2026 total	2027 total
Biomass-based diesel	8.86	8.95	9.07	9.20
Advanced biofuel	10.82	10.98	11.10	11.32
Cellulosic biofuel	1.36	1.43	1.36	1.43
Total renewable fuel	25.82	25.98	26.81	27.02

The gap between base and total volumes comes from reallocating 70% of the volumes exempted for small refineries (SREs) in 2023–2025. DTN reported that EPA had weighed options from 0% to 100%, while biofuel and farm groups pushed for full reallocation. The rule also removes renewable electricity (eRINs) as a qualifying fuel.

Coverage differs on units. DTN reported the biomass-based diesel figures in "gallons", whereas EPA uses RINs. Because one RIN is defined as one ethanol-equivalent gallon, RIN numbers are not the same as physical gallons of biodiesel.

Industry and market reaction

Clean Fuels Alliance America welcomed the rule as much-needed certainty after US biodiesel production fell by about a third in 2025 compared with 2024. The group had earlier asked for a 2026 volume of at least 5.25 billion gallons. Kurt Kovarik, Clean Fuels' vice president of federal affairs, said the industry is ready to ramp up roughly 7 billion gallons of existing production capacity, adding that biodiesel and renewable diesel account for 10% of the value of every bushel of US soybeans.

Renewable Fuels Association President and CEO Geoff Cooper, quoted by DTN, said the rule locks in the highest-ever volume obligations in the programme's history. DTN lead analyst Rhett Montgomery noted that soybean oil rose on the news, but said the timing of the foreign feedstock provision, which only starts in 2028, could make some traders uneasy. EPA estimates the rule will generate more than US$10 billion for rural economies and over 100,000 jobs.

Signals for palm oil and imported feedstock

For Indonesia, the key point is the direction of feedstock policy. The final rule does not immediately cut RIN values for imports, but EPA said that from 2028 foreign fuels and feedstocks will be worth only half as much as domestic products for RFS compliance. According to DTN, EPA said the delay to 2028 gives domestic producers time to prepare and ensures American farmers benefit.

In other words, surging US biodiesel demand is likely to be steered toward domestic feedstock, mainly soybean oil, rather than imported vegetable oils or wastes. Together with the feedstock-origin limits on the 45Z tax credit, the policy narrows the room for feedstock from outside North America in the US biofuel market, while potentially affecting the global vegetable oil balance that also shapes palm oil prices.