The Environmental Protection Agency (EPA) has released its long-awaited renewable volume obligation proposal for 2026 and 2027, which included historic increases in biomass-based diesel volumes and recommendations to strengthen domestic markets for U.S. soybean farmers.  

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% increase. If finalized, this proposal would jumpstart a biofuel industry that has largely been crippled by weak Renewable Identification Numbers (RIN) credit values.  

“As we celebrate the 20th anniversary of the Renewable Fuel Standard, the American Soybean Association applauds the work of President Trump, Administrator Zeldin and Secretary Rollins in promoting American energy dominance and strengthening a key domestic market for U.S. soybean farmers,” said Caleb Ragland, ASA president and soybean farmer from Magnolia, Kentucky. “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. We thank the Trump Administration for recognizing and supporting this vital value chain for U.S. agriculture.” 

Additionally, 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.  

“I think it’s exciting and we have to advocate for our needs. When we get good news, we’ve got to be appreciative of that – and we are,” said Wisconsin farmer and ASA Director Don Lutz. “We have to take advantage of the opportunities that biofuels present, and the EPA listened to our concerns.”    

The proposal now enters a period of stakeholder engagement and feedback.  

“Anything that helps us sell more soybeans and increase our prices domestically so we’re not so reliant on international markets is a great thing,” said Doug Rebout, president of the Wisconsin Soybean Association.