The US Environmental Protection Agency (EPA) expects to issue a final rule setting renewable fuel volume obligations (RVOs) for 2026 and 2027 during the first quarter of 2026, according to a S&P Global report citing a 15 December filing with the US Court of Appeals for the DC Circuit.
The EPA’s filing came in response to an 8 December order directing the agency to provide an update on its progress and timeline for establishing RVO mandates for the next two years, the 16 December report said.
According to the filing, the delayed response was due to pending multiple interagency reviews and consultations.
The order stemmed from ongoing litigation brought by HF Sinclair Refining & Marketing, HF Sinclair Parco Refining and Alon Refining Krotz Springs, challenging the EPA’s August decision to deny their small refinery exemption (SRE) petitions for 2024 compliance, the report said.
In June, the EPA released a proposed rule, referred to as “Set 2”, for 2026 and 2027. The proposal also aimed to limit imported biofuels and feedstocks, eliminate electricity from the RFS programme, and reduce the 2025 cellulosic RVO, while setting higher biodiesel blending targets, S&P Global wrote.
Market participants are waiting for further guidance on the 45Z tax credit and the RVO finalisation, as both policies play a key role in biofuels margins, according to the report.
Industry participants have said delays add near-term uncertainty for RIN values and blending economics, particularly as refiners assess compliance strategies for 2026.
A public comment period closed in August, followed by a supplemental proposal in September that explored reallocating volumes waived under the small refinery exemption programme, the report said.
The EPA had originally said it expected to finalise the RVO rules before the statutory deadline of 30 November 2025.
In its 15 December filing, the EPA said it was working to finalise the standards, noting that more than 2,000 public comments had been submitted.
It was coordinating with other federal agencies and addressing technical issues, including a regulatory impact analysis of the proposed volumes, the report said.
Once finalised, the RVO rule will determine blending obligations and compliance deadlines for biofuel producers and refiners in 2026 and 2027.
The 2025 RVO will expire on 31 January 2026, unless the EPA finalises the 2026 obligations earlier, in which case compliance deadlines would roll forward; otherwise, statutory deadlines would be moved forward to 1 June 2026, according to the EPA.
