(Iowa Capital Dispatch) – The U.S. Environmental Protection Agency, Friday, released its renewable fuel standards draft rule which, if finalized, would set record high levels of biofuels to be blended into U.S. transportation fuels. Iowa Renewable Fuels Association Executive Director Monte Shaw said the draft rule, which proposes a total 24.02 billion gallon blending level in 2026, is a “very strong starting point for further discussions.” Shaw said the association will need time to evaluate the proposal, specifically as it relates to changes in credits for imported fuels and feedstocks.

According to the proposal, EPA is considering “several regulatory changes” to the RFS program that would reduce the number of Renewable Identification Numbers, or RINs which is the measuring unit for renewable fuel, for imported renewable fuels and renewable fuels produced from imported feedstocks.

U.S. Secretary of Agriculture Brooke Rollins at the Elite Ethanol production facility in Atlantic. (Photo by Cecilia Lynch/USDA)

The U.S. Department of Agriculture reports imported biodiesel feedstocks, like used cooking oil, tallow and canola oil have all increased over the past several years due to the high cost of domestic feedstocks. According to the same report, in the 2023 and 2024 marketing year, the U.S. consumed nearly 30% of biofuel feedstocks exported globally.

The news to prioritize domestic feedstocks was welcomed by Iowa Soybean Association President Brent Swart, who said biomass-based diesel supports “roughly 10% of the price per bushel of soybeans.” U.S. Secretary of Agriculture Brooke Rollins said USDA and EPA have “never been more aligned” on the demand for domestically grown biofuels.

EPA will host a public hearing on the rules July 8.

Shaw said IRFA plans to work with EPA through the commenting period and to secure a final rule from the agency.