EPA Eases Biofuel Rules for 2025 While Setting 2026 Targets
Published Date: 4/1/2026
Rule
Summary
The EPA just set new rules for renewable fuels in 2026 and 2027, including how much biofuel must be used. They’re also easing the 2025 cellulosic biofuel goals because production fell short and removing renewable electricity from the program. These changes affect fuel producers and sellers, kick in mostly mid-2026, and aim to keep cleaner fuels flowing without breaking the bank.
Analyzed Economic Effects
8 provisions identified: 0 benefits, 3 costs, 5 mixed.
New 2026–2027 Renewable Fuel Volumes
The EPA set new Renewable Fuel Standard volumes for 2026 and 2027 that are more than 15% higher than the 2023–2025 levels. The EPA projects about 21.87 billion gallons will be supplied in 2026 and 22.25 billion gallons in 2027, and it set an implied conventional biofuel requirement of 15 billion gallons each year.
70% Reallocation of Small Refinery Exemptions
EPA is reallocating 70% of the renewable volume obligations that were exempted for small refineries for 2023–2025 into the 2026 and 2027 compliance years. This reallocation increases the volumes applied to 2026 and 2027 to address past exemptions.
Partial Waiver of 2025 Cellulosic Requirement
EPA used its cellulosic waiver authority to reduce the 2025 cellulosic biofuel requirement from 1.38 billion RINs to 1.21 billion RINs, reflecting a 0.17 billion RIN shortfall. The action also makes cellulosic waiver credits (CWCs) available for the 2025 compliance year.
Removal of Renewable Electricity (eRINs)
EPA is removing renewable electricity as a qualifying renewable fuel from the RFS program and is deleting the related regulations, definitions, and facility registration and RIN-generation provisions for renewable electricity (commonly called eRINs).
New Equivalence Values for Certain Fuels
EPA is specifying new equivalence values for renewable diesel, naphtha, and jet fuel in the RFS regulations. These equivalence values determine how many RINs are generated per physical gallon for those fuels.
Joint and Several Liability for Importers
EPA is adding a joint and several liability provision that applies to importers of renewable fuel, making importers legally liable under certain circumstances for RFS compliance obligations.
No RINs for Fuel Used for Process Heat/Electricity
EPA clarified that RINs cannot be generated for renewable fuel that is used for process heat or for electricity generation. RIN generation is limited to qualifying transportation fuel uses.
Delay of Import RIN Reduction (IRR) Policy
EPA decided not to finalize the proposed import RIN reduction (IRR) provisions in this rule and intends to establish IRR provisions that will take effect beginning in the 2028 compliance year or shortly thereafter.
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