The US Environmental Protection Agency (EPA) has proposed Renewable Fuel Standard (RFS) renewable volume obligations (RVOs) for 2026 and 2027, Biodiesel Magazine wrote.
In addition to altering the RFS to limit the use of imported fuels and feedstocks, the proposal also eliminates electricity from the programme and reduces the 2025 cellulosic RVO, according to the report.
Published on 13 June, the EPA proposal set the total 2026 RVO at 24.02bn renewable identification numbers (RINs), an increase of almost 8% compared to the previous year, with the 2027 RVO set at 24.46bn RINs, an increase of almost 2%, the report on the same date said.
The proposed 2026 RVO included targets of 1.3bn cellulosic biofuel RINs, 7.12bn biobased diesel RINs and 9.02bn advanced biofuel RINs. The implied mandate for conventional biofuel, mainly met by corn ethanol, would be set at 15bn RINs.
Although the EPA previously proposed its biobased diesel targets in terms of gallons rather than RINs, the agency now proposed to specify the biobased diesel target in RINs, projecting that 5.61bn gallons (21.2bn litres) of biobased diesel would be needed to comply with the 2026 RVOs, Biodiesel Magazine wrote.
The proposed 2027 RVO included targets of 1.36bn cellulosic biofuel RINs, 7.5bn biomass-based diesel RINs and 9.46bn advanced biofuel RINs. The implied mandate for conventional biofuel would be set at 15bn RINs. The EPA estimated that 5.86bn gallons (22.18bn litres) of biobased diesel would be needed to meet the 2027 RVOs.
Commenting on the EPA’s proposal, the Renewable Fuels Association (RFA) said the proposed rule provided crucial growth opportunities.
“This proposal sends a very positive and powerful signal to US renewable fuel producers and farmers. It represents an excellent starting point for the 2026 and 2027 RVO discussion,” RFA president and CEO Geoff Cooper was quoted as saying.
Clean Fuels Alliance America also welcomed the proposed rule.
“Today’s RFS proposal is a welcome and timely signal to US biodiesel, renewable diesel and SAF producers as well as America’s farmers and agricultural businesses,” Clean Fuels vice president of federal affairs Kurt Kovarik was reported as saying.
“Our industry supplied more than 5bn gallons [18.92bn litres] of biodiesel, renewable diesel and SAF to the US market in 2024, and is poised to deliver more in 2026.”
The proposed rule also included provisions aimed at boosting domestic biofuel production by limiting the ability for imported fuels and feedstocks to participate in the RFS, Biodiesel Magazine wrote. Specifically, the EPA proposed to modify the value of a RIN based on whether the biofuel was derived from domestic or foreign sources. Under the proposed regulations, foreign biofuels and feedstocks would only generate 50% of the RIN value relative to domestic biofuels and feedstocks.
To ensure renewable fuel producers generated the appropriate number of RINs, the EPA has proposed that all domestic renewable fuel producers should be required to keep records of feedstock purchases and transfers identifying the point of origin for each feedstock and report that information to the EPA.
The feedstock origin would generally be defined as the location where a feedstock was grown, produced, generated, extracted, collected or harvested.
For planted crops, cover crops or crop residue, the point of origin would be the location of the feedstock supplier that supplied the feedstock to the renewable fuel producer or bio-intermediate producers, such as the grain elevator.
For oil derived from planted crops, cover crops or algae, the point of origin would be the crushing facility where the oil was extracted.
For biogenic waste oils/fats/greases, separated yard waste, separated food waste, or municipal solid waste (MSW), the point of origin would be the location of the establishment where the waste is collected, such as a restaurant or food processing facility.
A public comment period on the proposed rule is now open until 8 August.
The EPA has said it would hold a virtual public hearing on the proposed rule on 8 July, with an additional session on 9 July if needed.
