EPA Proposed RFS Blending Rule a Strong Starting Point for Further Discussions

Final Rule Should Fully Account for All Future Refinery Exemptions

Contact: Monte Shaw

515-252-6249

WEST DES MOINES, IA - Today the US EPA released its draft rule to set renewable fuels standard (RFS) blending levels for 2026-2027. The rule, which will now go through a period of public comment and review prior to being finalized, set the total RFS blending level at 24.02 billion gallons, a record amount, and biomass-based diesel, which includes biodiesel, at 5.61 billion gallons. The conventional blending level, which includes corn ethanol, is 15 billion gallons.

"IRFA is pleased that today's EPA proposal is a very strong starting point for further discussions," said Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw. "We will need time to evaluate the new proposal to reduce RFS credits from imported fuels and feedstocks and the estimated volumes from both foreign and domestic feedstocks. As in the past, we will be working with EPA during the comment period to ensure that any and all refinery exemptions (SREs) are accounted for in the future rule. President Trump included reallocation of SREs in the final RFS rule during his first term. We are very pleased to see indications in today's announcement that the policy will not change."

President Trump had challenged refiners and renewable fuels to come up with a unified RFS blending level request. Despite differences in the past, a joint request was submitted to the EPA. The final blending levels for 2025, the unified request for 2026, and today's EPA proposal for 2026 are outlined below.

* Billions of RFS blending credits (RINs)

^ Due to energy density, one gallon of biomass-based diesel generates 1.6 RFS blending credits (RINs). Therefore, the biomass-based diesel blending levels in 2025 and the Unified Request are 3.35 billion gallons and 5.25 billion gallons respectively.

# Due to the proposal's reduced credit for fuel from foreign feedstocks, EPA estimates these RINs equate to 5.61 billion gallons.

"Agriculture is hurting, having just endured the largest two-year drop in net farm income in history," said Shaw. "We need forward leaning RFS blending levels to maximize American energy dominance. Midwest farmers are ready to help power our economy. We look forward to sharing our views with the EPA in public comments and securing a final rule that propels the US farmer forward."

The Iowa Renewable Fuels Association represents the state's liquid renewable fuels industry and works to foster its growth. Iowa is the nation's leader in renewable fuels production with 42 ethanol refineries capable of producing 4.7 billion gallons annually - including 34 million gallons of annual cellulosic ethanol production capacity - and 10 biodiesel facilities with the capacity to produce 416 million gallons annually. For more information, visit the Iowa Renewable Fuels Association website at: www.IowaRFA.org .

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