The American Fuel & Petrochemical Manufacturers (AFPM) trade association has filed a lawsuit challenging the 2026/2027 Renewable Fuel Standard (RFS) volumes finalised by the Environmental Protection Agency (EPA) in March.
The EPA’s “Set 2 rule” was the largest and most expensive RFS to date and was the single most expensive regulation of President Donald Trump’s second term, the AFPM said in a 3 June statement on its website.
Commenting on the lawsuit, filed in the DC Circuit court on 29 May, AFPM president and CEO Chet Thompson said: “The cost of complying with the RFS recently hit a new all-time high, exceeding 35¢/gallon for the first time. This is the inevitable consequence of EPA finalising an unlawful, impracticable regulation, which AFPM is formally challenging on behalf of our members – the refineries that supply gasoline and diesel fuel to the United States market – and consumers of these fuels around the country.”
According to the AFPM, the cost of complying with the RFS Set 2 mandate is expected to exceed US$106bn over the next two years, or 26¢-35¢/gallon for every gallon of gasoline and diesel supplied to the US market.
While offering US$400M in benefits, the EPA’s own regulatory impact analysis showed the RFS Set 2 rule would cost Americans more than US$20bn/year – with refineries and American consumers taking on most of these costs, the AFPM said.
Without a solvent RIN bank, the only way to comply with the RFS would be to reduce the amount of transportation fuel supplied to the US market as only gasoline and diesel fuel sold domestically incurred an RFS obligation, while exported fuels were exempt, the AFPM added.
RINs (Renewable Identification Numbers) are tradable compliance credits that track the production and use of renewable fuels in the USA.
AFPM said it would outline details of its full case against the RFS Set 2 rule in a future brief.
The AFPM is the leading trade association representing US fuel, petrochemical and feedstock producers.
