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Friday, March 27, 2026
EPA finalized today its Renewable Fuel Standard (RFS) Set 2
rule, establishing renewable fuel volume requirements for 2026 and
2027 at the highest levels in the program s 20-year history. EPA
also said it will reallocate 70% of the Renewable Volume
Obligations (RVOs) for volumes subject to Small Refinery
Exemptions (SREs). EMA has not yet analyzed the text of the actual
final RFS rule; however, the following are key provisions from the
agency s
press release.
Record-High Volume Requirements: The
2026 and 2027 RVO levels are the most ambitious in the history of
the RFS program. To meet these volumes levels, EPA will require
26.81 billion Renewable Identification Numbers (RINs) of renewable
fuel in 2026 and 27.01 billion RINs in 2027. The agency estimates
that biodiesel and renewable diesel production will need to
increase by more than 60 percent compared to 2025 levels. At the
same time, EPA is maintaining the 15-billion-gallon conventional
biofuel (ethanol) volume for both 2026 and 2027, providing
continued certainty for corn growers and ethanol producers.
SRE Reallocation: EPA is finalizing a 70 percent partial
reallocation of RVOs exempted under SREs for the 2023 2025
compliance years, applied to the 2026 and 2027 compliance periods.
EPA said that its approach is intended to ensure that exempted
gallons do not materially undermine the overall renewable fuel
targets while maintaining a stable RINs market.
Foreign
Feedstock Penalty (Effective 2028): Beginning in 2028, foreign
fuels and feedstocks will receive only half the RINs value of
domestically produced products, providing domestic biofuel
producers a transition period while prioritizing American
agricultural feedstocks. Combined with the increase in RVOs, EPA
believes that U.S. dependence on foreign oil will be reduced by
some 300,000 barrels per day over 2026 and 2027.
Electric
Vehicle Carve-Out Eliminated: The final rule removes renewable
electricity from RFS compliance eligibility, reversing the Biden
administration s RFS framework that had allowed EV charging
stations to generate RINs. EPA has determined this use was
inconsistent with the Clean Air Act s focus on liquid
transportation fuels.
EMA will provide a more in-depth
analysis of the final rule once the rule text is available.
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