🌱EPA Proposes Renewable Fuel Standards Changes for 2026 and 2027
Renewable Fuel Standard (RFS) Program: Standards for 2026 and 2027, Partial Waiver of 2025 Cellulosic Biofuel Volume Requirement, and Other Changes; Supplemental Notice of Proposed Rulemaking
Summary
On June 17, 2025, the U.S. Environmental Protection Agency (EPA) proposed volumes and percentage standards for four categories of renewable fuel that would apply to obligated parties in 2026 and 2027 under the Renewable Fuel Standard (RFS) program. On August 22, 2025, the EPA issued decisions on 175 small refinery exemption (SRE) petitions under the RFS program. This supplemental proposal takes into consideration the expected impacts of the SRE decisions issued. Based on this information, the EPA is co-proposing additional volumes in 2026 and 2027 representing complete (100 percent) reallocation and 50 percent reallocation for SREs granted in full or in part for 2023 and 2024, as well as those projected to be granted for 2025, as part of the ongoing RFS rulemaking. The EPA is also providing more information on its projection of SREs to inform the calculation of the 2026 and 2027 percentage standards.
Agencies
- Environmental Protection Agency
Business Impact
$$$ - High
The regulatory text outlines the EPA's proposed Renewable Fuel Standard, which includes compliance and regulatory requirements for businesses involved with producing, distributing, and selling renewable fuels and transportation fuels. It highlights potential impacts of small refinery exemptions on renewable fuel volume obligations affecting market supply and demand.