The U.S. Environmental Protection Agency expects to finalize Renewable Fuel Standard renewable volume obligations for 2026 and 2027 in the first quarter of 2026, according to a notice submitted to the U.S. Court of Appeals for the D.C. Circuit on Dec. 15.
The filing was made in response to a Dec. 8 court order requiring the agency to provide an update on the status of its proposal to establish the 2026 and 2027 RVOs. The court directed EPA to submit the update within seven days and, if possible, include an estimated timeline for issuing the final volumes.
The order stems from ongoing litigation involving HF Sinclair Refining & Marketing LLC, HF Sinclair Parco Refining LLC, and Alon Refining Krotz Springs Inc. The companies filed lawsuits in September challenging EPA’s Aug. 22 decision denying small refinery exemption petitions. HF Sinclair is seeking relief from its 2024 RFS blending obligations for the Parco Refining facility in Sinclair, Wyoming, while Alon Refining Krotz Springs is requesting a waiver for its refinery in Krotz Springs, Louisiana. EPA determined in August that both petitions were ineligible, and the court later consolidated the cases.
In its Dec. 8 order, the court asked EPA to provide a brief status report outlining progress toward finalizing the 2026 RVOs, which will establish the expiration date of the 2024 renewable identification numbers that are central to the dispute.
EPA initially proposed the 2026 and 2027 RVOs in June through a notice of proposed rulemaking known as the “Set 2” rule. In addition to setting future volume requirements, the proposal would make several structural changes to the RFS, including limiting the use of imported fuels and feedstocks, removing electricity from the program, and reducing the 2025 cellulosic biofuel volume. The public comment period on the proposal closed Aug. 8.
The agency followed up in September with a supplemental notice of proposed rulemaking that outlined potential approaches for reallocating RVOs waived under the small refinery exemption program. Public comments on the supplemental proposal were accepted through Oct. 31.
In its Dec. 15 court filing, EPA said it “is currently working to finalize the renewable fuel standards for the 2026 and 2027 compliance years,” noting that the agency received more than 2,000 public comments on the Set 2 proposal and supplemental proposal.
“EPA is actively working on responding to comments, coordinating with other federal agencies, and resolving technical issues associated with the final rulemaking,” the agency wrote. “This rulemaking requires the resolution of complex issues involving the volumes of renewable fuel required for 2026 and 2027 and an analysis of those volumes in a Regulatory Impact Analysis.”
EPA further explained that staff must first develop and present policy options to agency leadership and receive direction before drafting the final rule. That process includes preparing the final preamble, Regulatory Impact Analysis, and responses to public comments, all of which must be reviewed and revised before the rule can be submitted to the White House Office of Management and Budget for interagency review.
During OMB review, EPA said it continues to coordinate with other federal agencies prior to finalizing the rule. The agency noted, however, that it has not yet submitted the Set 2 rulemaking to OMB and emphasized that the length of OMB review is outside EPA’s control.
The notice also highlighted additional statutory consultation requirements that must be completed before the rule can be finalized. These include coordination with the U.S. Department of Agriculture and the U.S. Department of Energy under the Clean Air Act, as well as consultations with the U.S. Fish and Wildlife Service and the National Marine Fisheries Service to meet Endangered Species Act obligations.
Based on these procedural steps and consultation requirements, EPA told the court it anticipates issuing the final Set 2 rule during the first quarter of 2026. The agency added that if the rulemaking is not completed by Jan. 31, 2026, the statutory deadline for the 2025 RFS would shift from March 31, 2026, to June 1, 2026.
Adapted from an article originally shared by Biomass Magazine. Image credit: Shutterstock – J.J. Gouin
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.