New U.S. Environmental Protection Agency goals call for an all-time high volume of biofuels to be blended into gasoline and diesel, the agency said in a Friday news release following President Donald Trump’s announcement at the White House.

The EPA’s Renewable Fuel Standard for 2026 and 2027 will set the volume of biofuels at the highest level in the program’s 20 years, the agency said in a statement released shortly after Trump touted the move in a speech to farmers gathered at the White House South Lawn.

The president framed the new standards as a move away from regulations based on radical environmentalism.

“What they’ve done to you — and the country, what they’ve done to the country — is just incredible,” he told the farmers. “The environmentalists, I mean, they are terrorists. They were terrorists.”

Trump added that the standards will generate over $10 billion of rural economic benefit in rural areas and create an estimated 100,000 jobs. Biofuels are primarily produced from corn and soybean crops, with corn-derived ethanol by far the most common biofuel in the country.

Trump and top administration officials said the new standards would help provide more domestic energy sources. The standards would reduce the demand for foreign oil by approximately 300,000 barrels per day, the EPA release said.

“For 20 years, this program has diversified our nation’s energy supply and advanced American energy independence,” EPA Administrator Lee Zeldin said in the release. “EPA is proud to deliver on this mission and to do so at historic levels.”

The standards will require a roughly 60% increase in biofuel and renewable diesel production over 2025 levels, the EPA estimated. That production would translate directly to a major economic boost for farmers, Agriculture Secretary Brooke Rollins said.

“With President Trump and Administrator Zeldin’s leadership, these historically high volumes are expected to create a $3 to $4 billion dollar increase in net farm income,” she said in the EPA release. 

While biofuels groups commended the new standards, the Fueling American Jobs Coalition, an advocacy group that represents independent oil refiners, said the goals were “too aggressive” and did not reflect what could realistically be blended into transportation fuels.

“Unfortunately, with today’s announcement, it’s clear that our efforts to advocate for achievable volumes were ignored, and this will now likely result in even higher prices at the pump for consumers,” the group said.

While the immediate future remains uncertain on federal emissions regulations and funding, school bus OEMs say they are prepared with varied solutions going forward to meet the needs of every customer, no matter the fuel or where they operate.

That was the key takeaway from a July 13 panel at STN EXPO West in Reno, Nevada. The OEM representatives on stage were Francisco Lagunas, general manager of North America Bus for Cummins; Jim Crowcroft, general sales manager for Thomas Built Buses; Katie Stok, product marketing and commercial readiness for IC Bus; Frank Girardot, the PR, marketing and government relations leader at RIDE; and Brad Beauchamp, EV product segment leader for Blue Bird. The session attempted to provide some clarity to the ever-changing funding and fuel landscape.

“The only certainty is that everything is so uncertain,” Lagunas punctuated during the “The Engines & Emissions Pathway Forward” session, facilitated by School Transportation News Editor-in-Chief Ryan Gray.

Lagunas added that Cummins is seeing an increased demand in diesel, confirming that the new B6.7 octane engine will be available in January. Though, he noted that investments in electric batteries and drive systems have not slowed down. Accelera, the zero-emissions division of Cummins, is a member of a joint venture with Daimler Truck North America and Paccar to create a U.S.-based battery cell manufacturer, Amplify Cell Technologies.

Crowcroft agreed, adding that one year has made a huge difference in industry focus. Several of the same panelists sat on a similar panel last year at STN EXPO, where he said EV was the focus of the industry.

“Now, it’s been a complete 180 [degree turn] this year,” he shared, adding that the industry has spent too much time talking about EVs and not enough time talking about the other offerings.

This year has been about being diverse, being nimble and ready to adapt to change when necessary. “What is the most practical plan?” he asked, noting that diesel technology has advanced and EV fatigue is setting in.

He shared that Thomas is not telling customers what fuel or energy type to use but instead empowering them to choose what works best for their fleets. Noting the Trump administration’s relaxation of a federal push for zero-emission vehicles, Crowcroft said there has been a sigh of relief from customers for not feeling like they have to purchase electric school buses.

He noted that with all the changes and technologies, it puts more pressure on the OEMs to keep up. He said Thomas is committed to investing in quality, citing that ahead of the 2027 GHG Phase 3 regulations targeting lower NOx (the EPA currently has it on hold pending a proposal to remove GHG regulations), school districts might want to pre-buy within the next 12 months to avoid cost increases tied to the new technology.

Beauchamp said Blue Bird has always focused on a fuel-agnostic path for its customers, and the company plans on continuing with propane being a low emission source. While he said Blue Bird had yet to see EV order cancellations as of last month, he anticipates those orders will flatten. Regardless, Blue Bird is committed to EV, noting an $80 million grant from the U.S. Department of Energy last year (and double that amount in company matching funds) to build a new Type D electric school bus plant.

He noted that while the supply chain has improved coming out of COVID-19, “We’re not out of the words on it, yet,” he said.

Related: Electric School Bus Manufacturing Included in Nearly $2B Federal Energy Grant

Stok noted that the industry conversation should not be about low costs but having a supplier that delivers good quality on time. She noted that, like the other OEMs, EV is still very much part of the IC Bus product portfolio, as is diesel. However, she said the change in federal regulations will usher in changing order preferences across the industry, noting that IC is reintroducing its own gasoline school bus with the upcoming Cummins engine.

For the remainder of 2025, she said IC Bus is on track to have the highest production output from its Tulsa, Oklahoma plant. Communication is key right now, she added, and the manufacturer is working with its dealer network to listen to the customers and continue to improve.

Meanwhile, Girardot said it’s too early to predict what the future holds but BYD electric school bus company RIDE believes it holds a promise to furthering the deployment of EVs and enhancing the capabilities of vehicle to grid technology. He noted that V2G holds value and is something that communities need to consider. He highlighted success stories of V2G, such as in the Oakland Unified School District in California.

Girardot added that technician training on electric school buses is a must.

Additionally, RIDE announced a range extension on its blade battery, which took home the Best Green Technology, as judged by attendees at the STN EXPO West Trade Show Innovation Awards. Girardot added RIDE, too, received a competitive grant to expand its manufacturing facility.

Related: Transfinder, RIDE Win Big with STN EXPO Innovation Awards
Related: Another $200M Now Available for Electric School Buses in New York
Related: EPA Provides Update on Clean School Bus Program

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