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‘The Boldest Proposal Ever’: What Happened to EPA’s 2026/27 RFS Plan

EPA’s 2026/27 RFS plan is now final. Here are the final renewable fuel and biomass-based diesel requirements, how SRE reallocation changes applicable totals, and what agricultural groups supported or opposed.
From TheFinanceBase Team4 min to read

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EPA’s June 2025 plan drew praise from many farm and biofuel groups, but it is no longer just a proposal: the agency finalized the 2026–27 Renewable Fuel Standard (RFS) rule on March 27, 2026. The final requirements are higher than the proposed totals, and the final applicable totals rise further after small refinery exemption reallocation. “The boldest proposal ever” was Agriculture Secretary Brooke Rollins’s description of the proposal, not an EPA finding or an independently established ranking.

What was EPA’s 2026/27 RFS plan?

The Renewable Fuel Standard sets annual renewable-fuel volume requirements for the U.S. fuel market. EPA’s June 13, 2025 proposal covered compliance years 2026 and 2027. It proposed total renewable fuel volumes of 24.02 billion RINs in 2026 and 24.46 billion in 2027, along with biomass-based diesel volumes of 7.12 billion and 7.50 billion RINs, respectively. These were proposed figures, not the standards that ultimately took effect. (EPA’s 2025 proposal)

A RIN, or Renewable Identification Number, is an ethanol-equivalent compliance unit associated with renewable fuel. The figures below are therefore stated in RINs; they should not be read as literal physical gallons of blended fuel.

How did the final requirements differ from the proposal?

EPA finalized the rule on March 27, 2026. The final total renewable fuel requirements exceeded the proposal figures for both years. EPA also reported higher final biomass-based diesel requirements. The total applicable volumes include the effect of reallocating a portion of small refinery exemptions (SREs), so they are distinct from the base requirements.

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Fuel category and status 2026 2027
Total renewable fuel, proposed (billion RINs) 24.02 24.46
Total renewable fuel, final base requirement (billion RINs) 25.82 25.98
Total applicable volume after SRE reallocation (billion RINs) 26.81 27.02
Biomass-based diesel, proposed (billion RINs) 7.12 7.50
Biomass-based diesel, final base requirement (billion RINs) 8.86 8.95

The final total applicable volumes are 0.99 billion RINs above the base requirement in 2026 and 1.04 billion above it in 2027, reflecting SRE reallocation. EPA’s final standards page provides the current figures. (EPA’s final standards)

What does SRE reallocation mean?

Small refinery exemptions can relieve eligible refineries from some RFS obligations. EPA’s final rule reallocates 70 percent of exemptions granted for compliance years 2023–2025. That reallocation is why the final applicable total is larger than the final base requirement; the two figures describe different parts of the standard, not competing estimates.

EPA later issued a separate decision, dated August 31, 2026, on 34 petitions for 2025 compliance: it granted full exemptions to 18 petitions, partial exemptions to 11, denied three, and found two ineligible. Those petition outcomes are later developments and should not be conflated with the June 2025 proposal or the final rule’s 70 percent reallocation provision. (EPA’s August 31, 2026 petition decisions)

Why did agricultural and biofuel groups welcome the proposal?

Many ethanol, biodiesel, farm, and commodity organizations supported the proposed demand growth. Their stated case was that stronger renewable-fuel requirements could support demand for corn- and soybean-derived feedstocks, biofuel production, rural investment, and more predictable markets. Groups quoted in the initial reaction included Growth Energy, the Renewable Fuels Association, the American Farm Bureau Federation, the American Soybean Association, and the National Corn Growers Association. These were stakeholder expectations, not proof of later changes in farm income, employment, fuel prices, or economic activity. (Agriculture.com’s reaction roundup)

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Rollins, then U.S. Secretary of Agriculture, praised the June 2025 proposal as “the boldest proposal ever” and said it would provide market certainty for producers while delivering lower prices at the pump. That was her characterization and prediction. EPA Administrator Lee Zeldin said the proposal was intended to benefit American farmers while mitigating effects on gas prices and supporting the continued existence of liquid fuels. Neither statement establishes that the predicted consumer or producer outcomes occurred. (USDA’s June 13, 2025 statement; EPA’s June 13, 2025 announcement)

Support was not unanimous

The American Biogas Council objected to the proposal’s cellulosic biofuel trajectory. It argued that EPA’s proposed growth was too low relative to production growth and could harm dairy and livestock farmers. The reaction was therefore broad support for expanded biofuel demand, not agreement among every agricultural or biofuel interest on every part of the plan. (Agriculture.com’s reaction roundup)

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What else did EPA propose?

Alongside the volume levels, EPA proposed reducing the number or value of RINs associated with imported renewable fuel and fuel made from foreign feedstocks. It also proposed removing renewable electricity as a qualifying RFS fuel, a provision known as eRINs. These were elements of the June 2025 proposal; the available final-volume figures do not establish their precise final treatment, so they should not be described here as final-rule provisions. (EPA’s 2025 proposal)

What should readers take away?

  • The “2026/27 RFS plan” was proposed in June 2025 and finalized in March 2026.
  • Use the final base requirements—not the old proposal figures—for the current standards, and distinguish them from the higher applicable totals after SRE reallocation.
  • Many agricultural and biofuel groups supported the proposal’s demand outlook, but the American Biogas Council raised a specific objection about cellulosic fuel growth.
  • Statements about lower pump prices, farm income, jobs, and rural economic gains were attributed predictions, not established results.

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