The Environmental Protection Agency released its long-awaited renewable volume obligation proposal for 2026 and 2027. It included historic increases in biomass-based diesel volumes and recommendations to strengthen domestic markets for U.S. soybean farmers.
“The significant increase in proposed volumes for biomass-based diesel will support soybean farmers, soybean processors, and biofuel producers in rural America, and serves as a much-needed win for our communities,” says ASA President and soybean farmer Caleb Ragland.
The proposed rule makes significant increases in volume requirements for biomass-based diesel, from 3.35 billion gallons in 2025 to 5.61 billion gallons in 2026, or a 67 percent increase. For years, ASA and others in the domestic biofuel value chain argued that the previous renewable volume obligations missed the mark and did not account for the feedstock availability nor production capacity. If finalized, this proposal would jumpstart a biofuel industry that has largely been crippled by weak Renewable Identification Numbers (RIN) credit values.
Additionally, the EPA proposed a new concept to discount the RIN credit value for foreign finished fuel and fuels produced using foreign feedstocks. As soybean farmers struggle to maintain biofuel feedstock market share amid the rapidly growing flood of cheap, foreign feedstocks like used cooking oil, this proposal would once again give U.S. agriculture a competitive edge in the biofuel value chain.
Now, the proposal enters a period of stakeholder engagement and feedback.
See previous coverage from Mid-West Farm Report: https://www.midwestfarmreport.com/2025/06/08/upcoming-epa-announcement-could-determine-biofuel-plant-closures/
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