EPA Tunes Renewable Fuels: 2026-2027 Targets Amid Refinery Breaks
Published Date: 9/18/2025
Proposed Rule
Summary
The EPA is updating the rules for how much renewable fuel must be used in 2026 and 2027, affecting fuel producers and refiners. They’re adjusting fuel volume targets because of recent small refinery exemptions and sharing new info on future exemptions. These changes aim to keep the renewable fuel goals on track while balancing real-world challenges, with important deadlines coming soon.
Analyzed Economic Effects
3 provisions identified: 1 benefits, 0 costs, 2 mixed.
New 2026–2027 RFS Volume Standards
The EPA proposed volumes and percentage standards for four categories of renewable fuel that would apply to obligated parties for 2026 and 2027. This proposal was first published on June 17, 2025 and is the basis for new compliance targets that fuel producers and refiners must meet for those years.
SRE Reallocation Scenarios Proposed
The EPA is co-proposing additional renewable fuel volumes for 2026 and 2027 that represent two reallocation scenarios — complete (100%) reallocation and 50% reallocation — for small refinery exemptions (SREs) granted in full or in part for 2023 and 2024 and for those projected for 2025. The Agency referenced SRE decisions issued August 22, 2025 (175 petitions) as part of this supplemental proposal.
EPA Shares SRE Projection Details
The EPA is providing more information on its projection of small refinery exemptions (SREs) to inform how it calculates the 2026 and 2027 percentage standards. That additional information is intended to inform the ongoing RFS rulemaking and the calculation of those standards.
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