EPA Releases Final 2026-2027 RFS Rule

On Friday March 27, EPA signed and released the Final Renewable Fuel Standards for 2026 and 2027EPA made the announcement as President Trump hosted the White House Great American Agriculture Celebration. The volumes represent a historic change for the clean fuels industry, with EPA setting biomass-based diesel volumes that drive our industry rather than relying on overall advanced volumes – a long-sought goal for Clean Fuels.

In 2024, Clean Fuels organized industry stakeholders to agree on and cooperatively advocate a 5.25-billion-gallon biomass-based diesel volume in 2026. The volumes finalized by EPA exceed that request; the agency estimates the biomass-based diesel volumes at 5.4 billion gallons for 2026 and 5.7 billion gallons for 2027. Additionally, the agency estimates that the overall volumes will require additional gallons of biomass-based diesel: 6.07 billion in 2026 and 6.45 billion in 2027.

(billions)202520262027
BBD (D4) gallons3.355.45.7
BBD (D4) RINs5.368.868.95
BBD Supplemental Reallocation (D4) RINs 0.210.25
BBD Total Volume RINs5.369.079.2
Overall Advanced Volume RINs7.3310.8210.98
Overall Advanced Supplemental Reallocation RINs 0.280.34
Overall Advanced Total Volume RINs7.3311.111.32

EPA also finalized supplementary volumes for biomass-based diesel, advanced biofuels and overall renewable fuels to address the impact of small refinery exemptions granted in August and November 2025. EPA calculated supplementary volumes representing 70% of small refinery exemptions granted or estimated for 2023 – 2025.

EPA also finalized a cellulosic waiver for 2025, reducing the required volume from 1.38 billion gallons to 1.21 billion gallons. The agency did not establish supplementary volumes for cellulosic biofuels.

Other decisions finalized by EPA include a change to the equivalence value for renewable diesel, naphtha and jet fuel, based on a re-analysis of the petroleum content used in the hydrotreating process. Beginning in 2027, the base equivalence values will be:

  • Renewable diesel = 1.5 RINs per gallon.
  • Renewable jet fuel = 1.5 RINs per gallon.
  • Renewable naphtha = 1.4 RINs per gallon.

EPA notes that the equivalence value for renewable diesel is a conservative estimate. Producers can apply for a higher equivalence value (of 1.6 RINs per gallon) under 40 CFR 80.1415, by providing a technical justification that includes the feedstock and production process for the renewable fuel. EPA expects that most renewable diesel producers will apply for the higher equivalence value.

EPA did not finalize the proposed 50% RIN reduction for imported fuels and fuels made from imported feedstocks for 2026 and 2027. Nevertheless, they announced the intention to establish these provisions starting in 2028, providing producers and farmers time to prepare for the change.

Aaron Szabo, Assistant Administrator, and Alexander Dominguez, Deputy Assistant Administrator for Mobile Sources, with EPA’s Office of Air and Radiation (OAR) met with Clean Fuels’ Governing Board on Tuesday March 24, where they reiterated the agency’s intention to immediately turn to the RFS rule for 2028 and beyond. They invited detailed feedback on the 2026-2027 rule and what works or doesn’t work. Clean Fuels looks forward to input from members so we can continue the relationship with EPA and secure RFS rules that support industry growth.


Originally shared by Clean Fuels Alliance America. Image Credit: Pixabay – StockSnap

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