“In each action taken, EPA works to deliver for all Americans. From our farmers to our energy workers, each has an important role to play in growing our economy and ensuring America’s energy independence,” said EPA Administrator Zeldin. “As soon as we got into office, American farmers asked the Trump EPA not to give them handouts but create avenues for them to enter additional markets. As our farmers continue to harvest their crops, today’s proposal is working to maintain a strong and durable market for them to sell to.”
“American biofuel producers have stepped up to the plate to provide record production, helping to fuel our nation and provide more market opportunities for our farmers. I’m thrilled to see Administrator Zeldin act on this growing momentum and provide a path forward to 100% reallocation by 2027,” said U.S. Secretary of Agriculture Brooke L. Rollins. “The American biofuel industry provides over $100 billion in economic activity and supports over 100,000 American jobs while helping to deliver on President Trump’s energy dominance agenda. The Trump Administration will continue to stand by and deliver results for our farmers.”
“The Trump administration is carrying through on its promise to support Iowa family farmers and biofuel producers. I worked closely with the White House, along with Sen. Ernst and Reps. Hinson, Miller-Meeks, Nunn and Feenstra, to secure full reallocation for all exempted biofuels, and I appreciate the Trump administration following through in a timely fashion. Today’s decision is a major boost for Iowa’s rural economy and the 31,000 Iowa jobs that biofuels directly employ,” said Senator Chuck Grassley (R-IA).
“As farmers continue to harvest their crops across Iowa, we must reaffirm our commitment in providing certainty and reliable markets,” said Senator Joni Ernst (R-IA). “Reallocating the waived small refinery exemption volumes into the 2026 and 2027 Renewable Volume Obligations will strengthen our farm economy, bolster domestic markets, and lower prices for consumers. I thank President Trump and Administrator Zeldin for taking this important step to put farmers first and ensure they have the resources needed to succeed.”
“Farmers across Southeast Iowa are feeling the squeeze, and they need a market they can count on. I’ve worked to make this a reality because Iowa farmers deserve reliable markets for the crops they grow. This announcement helps deliver on that goal, creating more demand for Iowa corn and soybeans,” said Representative Mariannette Miller-Meeks (R-IA-01). “I’m grateful to Administrator Zeldin and President Trump for following through, and I will always fight to put Iowa farmers first.”
“Biofuels should be front and center in any plan to unleash domestic energy production and lower costs at the pump. Earlier this year, the administration announced the strongest biofuels blending targets in history, driving demand for Iowa ag products and new investment in our rural communities,” said Representative Ashley Hinson (R-IA-02). “Today’s proposal reflects the 100% reallocation agreement I helped secure in August—making sure refinery exemptions don’t reduce demand for homegrown biofuels and our farmers and producers are made whole. With farmers facing such difficult conditions right now, getting this across the finish line is a big deal. I’m grateful to Administrator Zeldin for working with me to protect the Renewable Fuel Standard, and I’ll keep pushing relentlessly for Iowa farmers and biofuels producers throughout this process.”
“Homegrown ethanol and biodiesel help us drive down the price of fuel at the pump for families and boost demand for what we grow in Iowa. Our farmers and biofuel producers built this market, and I fought to protect it because it keeps more of that fuel flowing to drivers and keeps the demand with Iowa farmers instead of foreign oil producers. I’ll keep working with Administrator Zeldin to get this rule finalized so families and farmers get the certainty they deserve,” said Representative Zach Nunn (R-IA-03).
When EPA promulgated the “Set 2” rule, the agency estimated the volume of hardship exemptions that small refineries would receive for their 2025 renewable fuel obligations. The August 31,2026, SRE decisions for those 2025 obligations exceeded EPA’s expectations, and an additional 770 million renewable identification numbers (RINs) worth of renewable fuels were exempted from RFS obligations. EPA is now proposing to fully reallocate this volume, to ensure farmers maintain and increase access to their markets. The agency recognizes the importance of getting stakeholder input on the best approach to do so. Therefore, EPA is seeking public comment on two proposed approaches:
Announced on March 27, 2026, by President Trump during the Great American Agriculture Celebration, the historic “Set 2” rule realigned the RFS program with Congress’ original intent of increasing the use of homegrown American biofuels, putting American farmers first. In the 20th year of the RFS program, the final rule sets the highest renewable fuel volumes in the history of the program. With EPA estimating the final rule would generate over $10 billion for rural economies and create over 100,000 new jobs in the agricultural and manufacturing sectors, the Trump EPA’s action created a larger, more stable, and more reliable domestic market for U.S. crops.
