March 27, 2026
Statement by Taxpayers for Common Sense President Steve Ellis on today’s announcement of 2026 and 2027 biofuel mandates under the Renewable Fuel Standard:
Today, the Environmental Protection Agency announced final U.S. biofuel mandates for 2026 and 2027, requiring record levels of corn and soybean-based biofuels to be blended into the nation’s fuel supply—adding pressure to food and fuel costs at a time when Americans are already facing higher prices.
The Renewable Fuel Standard requires transportation fuel suppliers to blend specified volumes of ethanol, biodiesel, and other biofuels into the gasoline and diesel they sell each year. For decades, it has led to higher food, feed, and fuel costs, while also driving taxpayer spending on biofuels subsidies.
The final mandated volumes—known as Renewable Volume Obligations — continue this trend. The new mandate increases total “renewable fuel” blending requirements from 22.33 billion Renewable Identification Numbers in 2025 to 25.82 billion in 2026 and 25.98 billion in 2027. Each gallon of renewable fuel generates Renewable Identification Numbers – credits that fuel blenders can buy and sell to meet federal biofuel mandates.
Notably, the final rule nearly doubles the biomass-based diesel mandate from 2025 levels, increasing to 8.86 billion RINs in 2026 and 8.95 billion in 2027. These requirements also do not account for additional volumes resulting from the Environmental Protection Agency’s reallocation of prior-year mandates announced today.
Corn ethanol continues to receive a 15-billion-gallon annual mandate in both 2026 and 2027—the statutory maximum set by Congress.
The Environmental Protection Agency’s updated projections for advanced cellulosic biofuels production underscore how the Renewable Fuel Standard has failed both consumers and taxpayers. In 2007, Congress envisioned 16 billion gallons of non-food-based cellulosic biofuels produced by 2022. Actual production has fallen woefully short of this mandate —2026 volumes represent just 8.5% of that target. Instead, conventional, first-generation biofuels like corn ethanol and soy-based biodiesel continue to dominate compliance.
By continuing to pick winners and losers through mandated markets, federal policy drives demand for biofuels while increasing reliance on costly tax subsidies. The 45Z clean fuel production credit, expanded in 2025, is projected to cost taxpayers $53.1 billion over the next decade.
The Renewable Fuel Standard has done more harm than good—raising food and fuel prices, distorting agricultural markets, and creating lasting environmental liabilities. Congress and the Administration should roll back policies that burden taxpayers and consumers, not double down on them.
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EPA’s proposal can be found here https://www.govinfo.gov/content/pkg/FR-2025-06-17/pdf/2025-11128.pdf
For more information, see TCS’s fact sheet on the Renewable Fuel Standard – https://www.taxpayer.net/energy-natural-resources/renewable-fuel-standard-rfs-fact-sheet/
