EPA Weighs Biofuel Targets Amid Cellulosic Fuel Shortfall
Published Date: 6/17/2025
Notice
Summary
The EPA is holding a virtual public hearing on July 8, 2025, to talk about new renewable fuel rules for 2026 and 2027. They’re proposing to lower the 2025 cellulosic biofuel goals because there isn’t enough fuel being made, and they want to tweak some rules about fuel imports. These changes affect fuel producers and importers and could impact fuel prices and availability in the coming years.
Analyzed Economic Effects
4 provisions identified: 0 benefits, 2 costs, 2 mixed.
EPA proposing 2026–2027 renewable fuel targets
The EPA is proposing to set the applicable volumes and percentage standards for 2026 and 2027 for cellulosic biofuel, biomass-based diesel, advanced biofuel, and total renewable fuel. The proposal was announced June 13, 2025, and the detailed proposal is available on EPA’s RFS webpage.
Partial waiver of 2025 cellulosic requirement
EPA proposes to partially waive the 2025 cellulosic biofuel volume requirement and to revise the associated percentage standard because of a shortfall in cellulosic biofuel production. The proposal explicitly ties the waiver to the 2025 cellulosic shortfall.
Fewer RINs for imported/foreign-feedstock fuel
EPA proposes to reduce the number of Renewable Identification Numbers (RINs) generated for imported renewable fuel and for renewable fuel produced from foreign feedstocks. This change would alter how many compliance credits importers and producers of such fuels receive under the RFS program.
Proposal to remove eRINs (renewable electricity)
EPA proposes removing renewable electricity (eRINs) as a qualifying renewable fuel under the RFS program, meaning electricity used to produce qualifying fuels would no longer generate eRIN compliance credits under the program. The proposal is part of the June 13, 2025 announcement.
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Key Dates
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