Iowa Biodiesel Board Celebrates EPA's Strong Renewable Fuel Standard Volumes

(ANKENY, Iowa) — The Iowa Biodiesel Board celebrated the U.S. Environmental Protection Agency’s finalization of the 2026-2027 Renewable Fuel Standard rule today, with substantial biomass-based diesel volumes that should help the industry recover and get back on track. President Trump announced the finalization at a farmer event at the White House, saying “the golden age of agriculture is right here and right now.”

Last year, IBB joined with other industry stakeholders to advocate for a robust RFS biomass-based diesel volume of at least 5.25 billion gallons for 2026. EPA delivered effective volumes of 8.86 billion Renewable Identification Numbers (RINs) for 2026 and 8.95 billion RINs for 2027 — the largest RVO in history for biomass-based diesel. Although EPA made the announcement, the final rule still needs to be published to convert those RINs into actual gallon equivalents.

The finalized volumes and plan for reallocating small refinery exemptions through a standardized formula should help get that capacity up and running again. IBB Executive Director Grant Kimberley issued the following statement: 

"This is the right decision at the right time — for American energy security, for farmers-first and for consumers at the pump. Our state’s unused capacity due to market uncertainty can now be brought back online, using regionally diverse feedstocks like soybean oil and facilities already built and ready to run. Iowa's eight operating plants, including three that are independent and locally owned, are eager to get back to work.

"When biodiesel producers succeed, our farmers also succeed. Biomass-based diesel production represents 10 percent of the value of every bushel of soybeans grown in the United States. Consumers also stand to gain through greater domestic energy security and fuel diversity. The Trump administration deserves real credit for acting with ambition and belief in biodiesel. This strong biomass-based diesel volume is exactly what this industry needs to put idled capacity back to work and strengthen our domestic energy supply at a moment when the country needs it most. This decision puts American energy and American agriculture on stronger footing — and Iowa's biodiesel industry is ready to deliver."

Iowa biodiesel production reports show production dropped \from 353 million gallons to 266 million gallons, marking a decade low, largely due to federal policy instability.

With the benefits the RFS “Set 2” will bring to America’s farmers, EPA estimates that the rule will generate over $10 billion for rural economies and create over 100,000 new jobs in the agricultural and manufacturing sectors.

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Jenna Rose, IBB