The federal Renewable Fuel Standard (RFS) provides a sometimes confusing but important series of regulations meant to support U.S. energy independence and environmental goals. A strong RFS is essential to a healthy biodiesel industry.
Here’s how the RFS works:
- Under the RFS, the U.S. Environmental Protection Agency (EPA) sets minimum requirements for the amount of renewable fuel that refiners must blend into the nation’s transportation fuel supply. These minimums are known as renewable volume obligations (RVOs)
- The EPA tracks compliance with established RVOs through Renewable Identification Numbers (RINs). Companies can buy and sell RINs to meet their blending obligations
- In early 2025, the EPA set RVOs that were actually less than the U.S. biodiesel production capacity. These low RVOs put downward pressure on the value of RINS, depressing biodiesel market prices
- In June 2025, the EPA restored strong RVOs for the biomass-based diesel category ─ an estimated 5.61 billion gallons for 2026 and 5.86 billion gallons for 2027. These record-high RVOs significantly improve the value of RINS, and in turn, the market potential for biodiesel
Adapted from an article originally shared by Clean Fuels Alliance America. Image Credit: Flickr – United Soybean Board
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. This post is shared for educational purposes only.