Federal Register Date: 2026-04-01
Original Source: Read Full Notice
This final rule establishes the applicable volume requirements and associated percentage standards for renewable fuels under the Renewable Fuel Standard (RFS) program for the years 2026 and 2027. These standards are mandated by the Clean Air Act (CAA), which requires the Environmental Protection Agency (EPA) to determine volume requirements for years following those specifically outlined in the statute. The rule addresses volume requirements for cellulosic biofuel, biomass-based diesel (BBD), advanced biofuel, and total renewable fuel.
For cellulosic biofuel, the EPA has determined specific volume requirements for both 2026 and 2027, taking into account factors such as projected production capabilities and market conditions. These volumes are intended to promote the growth of this advanced biofuel category, which is derived from non-food sources and offers significant greenhouse gas reduction benefits.
Similarly, the rule sets volume requirements for biomass-based diesel (BBD) for 2026 and 2027. These requirements are designed to support the continued production and use of biodiesel and renewable diesel, contributing to overall renewable fuel goals and reducing reliance on petroleum-based fuels.
The EPA also establishes volume requirements for advanced biofuel, a broader category that includes cellulosic biofuel and BBD, as well as other biofuels that meet specific greenhouse gas reduction thresholds. The advanced biofuel requirements for 2026 and 2027 are intended to encourage the development and deployment of a diverse range of advanced renewable fuels.
Finally, the rule sets overall volume requirements for total renewable fuel, encompassing all categories of renewable fuels, including conventional biofuels like corn ethanol. These total renewable fuel requirements for 2026 and 2027 ensure that the RFS program continues to drive the blending of renewable fuels into the nation’s transportation fuel supply.
In addition to setting volume requirements for 2026 and 2027, this final rule also includes a partial waiver of the 2025 cellulosic biofuel volume requirement. This waiver is being implemented due to a projected shortfall in cellulosic biofuel production for 2025, making it infeasible to meet the previously established statutory volume requirement. The EPA is adjusting the 2025 cellulosic biofuel volume requirement and revising the associated percentage standard to reflect this shortfall. This adjustment ensures that the RFS program remains achievable and avoids imposing undue burdens on obligated parties.
Furthermore, this final rule includes several regulatory changes to the RFS program. One significant change is the removal of renewable electricity as a qualifying renewable fuel under the RFS program. Previously, renewable electricity used as transportation fuel could generate Renewable Identification Numbers (RINs), known as eRINs. The EPA is eliminating this pathway due to concerns about the complexities of verifying and tracking renewable electricity used in transportation, as well as potential program integrity issues.
The rule also includes minor revisions to the biogas provisions of the RFS program. These revisions are intended to clarify existing regulations and streamline the process for biogas producers to participate in the RFS program. The changes address issues such as the definition of biogas, the requirements for biogas production facilities, and the procedures for generating RINs for biogas-derived renewable fuels. These revisions are designed to promote the use of biogas as a renewable fuel source and to reduce regulatory burdens on biogas producers.
In summary, this final rule establishes the RFS volume requirements for 2026 and 2027, partially waives the 2025 cellulosic biofuel volume requirement, removes renewable electricity as a qualifying renewable fuel, and makes minor revisions to the biogas provisions of the RFS program. These actions are intended to ensure the continued effectiveness and integrity of the RFS program in promoting the production and use of renewable fuels in the United States. The rule aims to balance the goals of increasing renewable fuel use, reducing greenhouse gas emissions, and supporting the development of advanced biofuels, while also addressing practical challenges and ensuring program integrity.
