The Environmental Protection Agency announced on Friday its finalized renewable volume obligations (RVOs) for ethanol and biomass-based diesel for the next two years.

As expected, the RVOs are at the highest levels in history. The EPA boosted biomass-diesel blending mandates for 2026 and 2027 to 8.86 billion renewable identification numbers (RINs) and 8.95 billion, respectively.

The EPA is finalizing a 70 percent partial reallocation for the 2023-2025 exemption for the 2026 and 2027 compliance years, raising total volumes.

“To meet the historic 2026 and 2027 volume levels, EPA estimates that biodiesel and renewable diesel production and use will need to increase by over 60 percent compared to 2025 volumes,” the EPA said in a press release.

The EPA said starting in 2028, foreign fuels and feedstocks will receive half the Renewable Fuel Standard compliance value compared to American-made products. Domestic-based feedstocks, primarily soybeans, could see increased demand for biofuel production in proceeding compliance years.

Friday’s announcement came in largely in line with market expectations. May soybean futures sold off more than 17 cents following the announcement in a “buy the rumor, sell the fact” situation. May corn futures traded more than a nickel lower.

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