EPA Administrator Announces Revisions to Renewable Fuel Standard ‘Set 2’

Washington, D.C. (Oct. 13, 2026) — While in Peosta, Iowa, U.S. Environmental Protection Agency (EPA) Administrator Lee Zeldin announced revisions to the Renewable Fuel Standard “Set 2” rule volumes to keep the historic and necessary volumes intact and increase target markets for American farmers. In response to the higher than projected 2025 small refinery exemption (SRE) decisions and the needs of American farmers, the agency is proposing two options for revisions, both of which would reallocate 100% of the difference between projected and actual exempted volumes for 2025 SREs.  

The EPA understands the importance of providing a predictable and stable market for farmers, refiners, and American consumers to both maintain economic competitiveness and keep energy prices low. The proposal reflects a commitment to ensuring America’s farmers continue to have a robust and growing market for their crops.  

“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 Zeldin. “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.

“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.”

When the 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 Aug. 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 Renewable Fuel Standard 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:

• Proposed approach one: EPA would divide the additional 2025 SRE volume equally between the 2026 and 2027 compliance years
• Proposed approach two: EPA would reallocate all the additional 2025 SRE volume to the 2027 compliance year

EPA will take public comments on the proposal until Dec. 4.  

Additionally, the proposed revision to the 2026 standards may extend the existing 2026 compliance reporting deadline of March 31, 2027. If finalized, this proposal will ensure that all the benefits of the “Set 2” rule will be realized for American farmers.

Background on Renewable Fuel Standard ‘Set 2’  

Announced on March 27, 2026, by President Trump during the Great American Agriculture Celebration, the historic “Set 2” rule realigned the Renewable Fuel Standard program with Congress’ original intent of increasing the use of homegrown American biofuels. The EPA estimates the final rule would generate over $10 billion for rural economies and create over 100,000 new jobs in the agricultural and manufacturing sectors.