On June 13, 2025, EPA released its overdue Proposed Renewable Fuel Standards for 2026 and 2027. EPA is also proposing major changes to the RFS program intended to favor U.S. fuels produced with domestic feedstocks. Additionally, EPA is proposing to include an estimate of small refinery exemptions in the RVO calculation, which will protect market space for renewable fuels from future exemptions.
EPA is not proposing action on pending exemptions through 2025.
The proposed requirements represent a robust step upward in market space for biomass-based diesel, when compared to 2025 – both in projected RIN requirements and RVO percentages.
| (billion RINs) | 2025 | 2026 | 2027 |
| BBD | 5.36 | 7.12 | 7.5 |
| BBD % RVO | 3.15% | 4.24% | 4.52% |
| Advanced | 7.33 | 9.02 | 9.46 |
| Advanced % RVO | 4.31% | 5.37% | 5.7% |
The agency is proposing going forward to set the Biomass-Based Diesel (BBD) requirement in RINs, instead of gallons as in prior years. This method would be consistent with other RVOs. The agency projects that the associated volumes for biomass-based diesel will be 5.61 billion gallons for 2026 and 5.86 billion gallons for 2027 – exceeding what Clean Fuels and allied trade associations requested.
EPA is also proposing to correct the RIN generation values for renewable diesel (to 1.6 RINs per gallon) and its co-products. Importantly EPA is proposing to halve the RIN generation values for imported fuels or U.S. fuels produced from imported feedstocks. Clean Fuels is carefully examining this proposal to gauge the impact on market space for our members’ fuels in coming years.
EPA will host a virtual public hearing on July 8. All attendees (including those who will not be presenting verbal testimony) must register by sending an email to RFS-Hearing@epa.gov no later than July 1, 2025.
EPA also finalized a Partial Waiver of 2024 Cellulosic Biofuel Volume Requirement. In a change from the proposal, EPA invoked its cellulosic waiver authority (rather than the general waiver) and will issue cellulosic waiver credits as a result. In keeping with the proposal, EPA will not waive the advanced or overall volume requirements for 2024.
In the proposal for the 2026 and 2027 volumes, EPA is also proposing to partially waive the 2025 Cellulosic Biofuel RVO using the cellulosic waiver authority.
Originally shared by Clean Fuels Alliance America. Article and title updated for purpose.
Notice: The Michigan Advanced Biofuels Coalition (MiABC) does not lobby or influence policy in any way. The policy interests of Michigan soybean farmers and biodiesel producers are supported by the Michigan Soybean Association and Clean Fuels Alliance America, respectively.