EPA proposes 2026, 2027 RFS volumes

WASHINGTON — A proposed rule to establish required Renewable Fuel Standard volumes and percentage standards for 2026 and 2027 was announced by the U.S. Environmental Protection Agency on June 13.

The announcement also includes a partial waiver of the 2025 cellulosic biofuel volume requirement and a revision of the associated percentage standard due to a shortfall in cellulosic biofuel production.

EPA proposed a total Renewable Volume Obligation of 24.02 billion gallons for 2026, including 15 billion gallons for conventional renewable fuels like corn ethanol and 9.02 billion gallons for advanced biofuels, including 5.61 billion gallons of biomass-based diesel and 1.3 billion gallons of cellulosic biofuel.

For 2027, the total proposed RVO is 24.46 billion gallons, of which 15 billion gallons is conventional renewable fuel and 9.46 billion gallons is advanced biofuel, including 5.86 billion gallons of biomass-based diesel.

In addition, EPA proposed several regulatory changes to the RFS program, including reducing the number of Renewable Identification Numbers, or RINs, generated for imported renewable fuel and renewable fuel produced from foreign feedstocks, and removing renewable electricity as a qualifying renewable fuel under the RFS program, or eRINs.

While the proposed rule does not specifically address 169 pending small refinery exemption petitions, it includes a commitment from EPA to reallocate any SREs that may be granted in future actions.

Public Hearing

EPA will hold a virtual public hearing on July 8 for the proposed rule. An additional session will be held on July 9, if necessary, to accommodate the number of testifiers that sign up to testify.

This hearing will be held virtually only. There will be no in-person hearing.

In order to attend the virtual public hearing, all attendees — including those who will not be presenting verbal testimony — must register by sending an email at RFS-Hearing@epa.gov.

A separate registration form must be submitted for each person attending the hearing. Register no later than July 1.

In order to allow everyone to be heard, EPA is limiting verbal testimony to three minutes per person. Speakers will not be able to share graphics via the virtual public hearing.

Speakers will be able to request an approximate speaking time as part of the registration process, with preferences considered on a first-come, first-served basis.

Reaction

“We thank EPA for releasing a timely proposal that will get the RFS program back on track and bring much-needed certainty to the marketplace. We look forward to reviewing the rule and working with the administration on an outcome that benefits all stakeholders and is in the best interest of American consumers.”

Will Hupman, vice president of downstream policy

American Petroleum Institute

“The significant increase in proposed volumes for biomass-based diesel will support soybean farmers, soybean processors and biofuel producers in rural America and serves as a much-needed win for our communities. The proposed rule makes significant increases in volume requirements for biomass-based diesel, from 3.35 billion gallons in 2025 to 5.61 billion gallons in 2026, or a 67% increase. For years, ASA and others in the domestic biofuel value chain argued that the previous renewable volume obligations missed the mark and did not account for the feedstock availability nor production capacity.”

Caleb Ragland, president

American Soybean Association

“We are thankful to President Trump and EPA Administrator Lee Zeldin that the EPA has released these robust RVO numbers in a timely manner. This action provides a significant certainty to corn farmers across the country who rely on a stable biofuels industry.”

Kenneth Hartman Jr., president

National Corn Growers Association

“The EPA’s initial proposal correctly recognizes that global feedstock supply and U.S. production capacity are more than sufficient to support a robust RVO. Strong RVOs are essential to diversifying the nation’s fuel supply, supporting rural economic development, lowering costs for consumers and businesses and reinforcing America’s competitive edge in energy innovation. This proposal makes clear that the EPA understands the critical role advanced biofuels can play in their broader energy dominance strategy, and our industry is elated at this development.”

Michael McAdams, president

Advanced Biofuels Association