Novel coatings with excellent properties have been formulated from polyols derived from the renewable resource soybean oil. Partially and fully epoxidized soybean oils (ESBO) were converted to novel soybean oil phosphate ester polyols (SOPEP) which were successfully incorporated into solventborne and waterborne bake coatings. Thermally cured waterborne alkyd coatings were produced with improved coating adhesion, low volatile organic compounds (VOC), excellent impact resistance, good hardness, less severe curing conditions, and lower cost. Solventborne alkyd coatings gave similar results. Soybean oil phosphate ester polyols appear to offer the coatings industry a low cost route to tough, durable, environmentally compliant, high performance coatings.