On Friday, the US EPA proposes raising biofuel blending targets for 2026 and 2027. With a significant increase in biomass-based diesel standards, the draft regulation calls for a total renewable fuel volume of 24.02 billion gallons for 2026, rising to 5.61 billion gallons in 2026 and 5.86 billion gallons in 2027. These numbers strongly support domestic biofuel production under the Trump administration and represent a significant increase from the 2025 target of 3.35 billion gallons for biomass-based diesel. The plan has been praised by Iowa’s biofuels industry and state leaders as a game-changer for energy security, economic growth, and agricultural communities, especially in the state that produces the most biodiesel in the country.

A Boost for Iowa’s Biofuel Industry and Economy

Producers of biodiesel in Iowa are excited about the planned RFS quantities and see them as a means of reviving the sector. According to Grant Kimberley, executive director of the Iowa Biodiesel Board, the volumes provide a “real opportunity” for domestic producers, especially in Iowa, where biodiesel plants have experienced difficulties because of previous policy uncertainties. Kimberley emphasized the possibility of job development and economic advantages for soybean farmers and rural areas, saying, “These volumes likely mean getting our idled biodiesel plants back up and running.” Iowa leads the nation in soybean production, a vital feedstock for biodiesel. Thus, the EPA’s aggressive goals complement the state’s agricultural advantages. The idea strengthens the Trump administration’s emphasis on energy independence by promoting American-made biofuels to boost local economies and lower dependency on foreign energy sources.

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Support from Lawmakers and Calls for Continued Commitment

US EPA proposes raising biofuel blending targets, and political leaders in Iowa have also supported the EPA’s proposal, seeing it as a victory for national security and energy. U.S. Sen. Joni Ernst and Republican U.S. Representatives Ashley Hinson and Randy Feenstra hailed the development, with Hinson stating that “energy security is national security.” The move comes after Hinson spearheaded a bipartisan campaign earlier this year to pressure the Trump administration to establish ambitious blending goals after the practices of the Biden administration idled certain biodiesel operations. This view was shared by Iowa Secretary of Agriculture Mike Naig, who praised the EPA for guiding producers away from foreign feedstocks and promoting biofuels to boost consumer savings and farmer market expansion. Naig also underlined the necessity of constant policy support and encouraged the administration to ensure that small refinery exemptions do not compromise these blending ambitions.

With Iowa leading the way in this expansion, the EPA’s proposed rule represents a turning point for the US biofuels sector. As the agency gets ready for a public hearing on July 8, stakeholders will be keenly monitoring how these goals influence the future of renewable fuels, paving the way for economic resilience and energy dominance. Supported by industry lobbyists and state leaders, the proposal lays out a hopeful path for the biofuel business in America until 2027.

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