EPA Releases Full Guidance on Record High RVO for 2026, 2027
The EPA released its final guidance on the 2026 and 2027 Renewable Volume Obligation (RVO) under the Renewable Fuel Standard (RFS) on Friday afternoon, which includes the highest levels for each fuel category in program history and a significant reallocation of volumes from the 2023 through 2025 compliance years.
To meet the record standards, which were largely praised upon release by proponents for the biofuels industry, the agency said that production of biodiesel and renewable diesel will need to increase by an estimated 60% compared to 2025 volumes over the period.
The agency also said that it would delay a plan to reduce by half the number of Renewable Identification Number (RIN) credits generated from imported renewable fuel and renewable fuel produced from foreign feedstocks to the 2028 RVO.
EPA said in its rule that the decision to punt the import RIN reduction plan out by two years as “we have concluded that more time would be needed to successfully establish and implement IRR provisions.”
The agency also reduced RIN multiplier values for sustainable aviation fuel and renewable diesel to 1.5 RINs per gallon, which will go into effect on Jan. 1, 2027.
The EPA had considered higher values in the initial proposal but said in the guidance that “we recognize that changing the equivalence values for these fuels in the middle of a compliance year has the potential to cause confusion for renewable fuel producers that generate RINs and obligated parties that are required to acquire RINs for compliance.”
The rule set blending for biomass-based diesel this year at an estimated 8.86 billion RINs. The agency moved in the final rule to offer the standards in RINs instead of gallons for the first time in program history. For 2027, biomass-based diesel volumes were set at 8.95 billion RINs.
The agency will continue to set conventional ethanol blending at 15 billion RINs for both compliance years.
Blending for cellulosic biofuels, meanwhile, will increase to 1.36 billion RINs in 2026 and 1.43 billion RINs in 2027. The agency will not tack on any reallocated volumes to that category.
For the total advanced biofuels bucket, which includes cellulosic biofuel and biomass-based diesel, the agency set blending for this year at 10.82 billion RINs, up significantly from 9.02 billion RINs in the proposed rule.
For 2027, blending will increase to 10.98 billion RINs.
On top of the record volumetric levels, the rule also notably tacks on a 70% reallocation of volumes associated with small refinery exemptions (SRE) from the 2023 through 2025 compliance years.
That reallocation calls for 0.21 billion RINs of biomass-based diesel in 2026 and 0.21 billion RINs in 2027, 0.28 billion RINs of advanced biofuel in 2026 and 0.34 billion RINs in 2027, and a sum of 0.99 billion RINs of total renewable fuel in 2026 and 1.04 billion RINs in 2027.
The issuance of the rule finally resolves the agency’s oft-delayed effort to get the standards out, which included an initial proposal in June 2025 and a supplemental proposal in September 2025.
The standards were swiftly praised on Friday afternoon by proponents for the renewable fuels industry expectedly pleased with the high volumes.
Geoff Cooper, president and CEO of the Renewable Fuels Association (RFA), said “the final rule locks in the highest-ever renewable fuel volume obligations and provides clarity for farmers, ethanol producers, oil refiners, and fuel distributors alike.”
“Today’s action by EPA and the White House will boost the farm economy, strengthen American energy security, and reduce fuel prices for hardworking families,” Cooper said.
Michael McAdams, president of the Advanced Biofuels Association (ABFA), said in a statement that the rule “is a clear, unambiguous signal to ABFA’s members and the broader energy economy: the Trump Administration is committed to a bold vision supporting the advanced biofuels industry and recognizing the critical role our fuels play in advancing America’s energy dominance.”
And Emily Skor, CEO of Growth Energy, said in a statement that “with this rulemaking, EPA and the administration are reinforcing their unwavering support for American-made biofuels and sending a strong signal about the continued role biofuels like ethanol will play in delivering American energy dominance and greater prosperity to the heartland.”
And Brian Jennings, CEO of the American Coalition for Ethanol, said that “Congress intended year-to-year renewable fuel blending to increase under the RFS and today’s announcement with the highest-ever volume obligations helps fulfill their intention.”
Monte Shaw, executive director for the Iowa Renewable Fuels Association, said the rule is a “strong step forward for renewable fuel producers and farmers.”
And Devin Mogler, president and CEO of the National Oilseed Processors Association, said the agency “delivered a landmark rule that provides the certainty and confidence American farmers and processors need.”
The Clean Fuels Alliance America (CFAA) also applauded the standards, as vice president of federal affairs Kurt Kovarik said the rule, “is a clear win for the nation’s energy security.”
On the cellulosic biofuel targets, RNG Coalition CEO Johannes Escudero said, “The final rule is certainly an improvement over the agency’s Set 2 proposal. The RNG Coalition will continue to urge EPA to administer a growth-oriented program as envisioned by Congress.”
And the American Biogas Council offered a more nuanced position on the standards, as Executive Director Patrick Serfass said the rule “fails to represent real-world biogas growth, which will constrain markets.”
“The action especially undercuts opportunities for livestock farmers, impeding one of the most reliable ways farmers can keep pace in a low-margin agriculture industry, and contribute to America’s energy dominance,” Serfass said in a release.
David Fialkov, representing the convenience, truck stop, and retail industries for NATSO, SIGMA and NACS, said “robust blending mandates such as those announced today can incentivize additional production of renewable fuels, creating additional supply and stabilizing prices.”
“At the same time, Congress should consider re-extending the Biodiesel Tax Credit to make diesel fuel — and all goods that move by truck — more affordable,” Fialkov said.
Meanwhile, the rule was criticized by representatives for the refining industry, as American Fuel & Petrochemical Manufacturers CEO Chet Thompson said, “it’s baffling, with fuel prices already rising due to the conflict in Iran, that EPA is finalizing a rule that will make things far worse for consumers.”
“The RFS already costs nearly 25 cents per gallon, and today’s rule will undoubtedly add tens of billions more,” Thompson said.
And the American Petroleum Institute said in a statement that, while the group appreciates the agency providing clarity on the standards, the reallocated bucket “distorts the marketplace, rewarding exempted refineries while disadvantaging the majority of refiners who are not exempted.”
Reporting by Patrick Newkumet, pnewkumet@opisnet.com; Editing by Jordan Godwin, jgodwin@opisnet.com