The U.S. EPA on July 8 hosted virtual public hearing to gather input on the agency’s recently released proposed rule to set 2026 and 2027 Renewable Fuel Standard renewable volume obligations (RVOs). Members of the biofuel industry were among those to offer testimony during the event.&nbsp;The proposed rulemaking, released by the EPA on June 13, would set the 2026 RVO at 24.02 billion renewable identification numbers (RINs), a nearly 8% increase when compared to the 2025 RVO. The proposed 2027 RVO is 24.46 billion RINs, up nearly 2% when compared to the previous year.&nbsp;The proposal includes an implied annual target of 15 billion gallons of corn ethanol for each of the two years, along with significant increases in the RVOs for biobased diesel. The proposed RVOs for cellulosic biofuel were set far below industry expectations.&nbsp;The proposed rule also aims to fundamentally change the RFS by limiting the ability of imported fuels and feedstocks to participate in the program. Specifically, the EPA has proposed to modify the value of a RIN based on whether the biofuel is 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.&nbsp;Another provision of the proposed rule aims to eliminate electricity, or eRINs, from the RFS. The EPA has taken steps in recent years to roll electricity into the RFS program, but, to date, has failed to approve a single eRIN pathway. The proposed rule aims to remove the definition of “renewable electricity” from RFS regulations along with the regulations associated with generating eRINs. If finalized, the proposed action will ensure that no RINs are generated in the future for electricity used in motor vehicles, according to EPA.&nbsp;Within the rulemaking, the EPA also signals its intent to reallocate RVOs expected to be impacted by small refinery exemptions (SREs) for 2026 and 2027.&nbsp;In its testimony, the Renewable Fuels Association expressed strong support for the proposed 2026 and 2027 RVOs and applauded the agency’s plan to reallocate SRE volumes and boost domestically produced fuels. “RFA fully supports the proposed implied conventional renewable fuel volumes of 15 billion gallons for both 2026 and 2027,” said Geoff Cooper, president and CEO of the RFA. “This will provide the ethanol industry with room for growth as E15 continues to gain momentum in the marketplace.”Regarding SREs, Cooper cautioned that EPA must be “extremely judicious” in determining whether any refiners have truly suffered, or will suffer, “disproportionate economic hardship” related to compliance with the Renewable Fuel Standard, adding that “it is critically important that EPA accurately estimate exempted volumes in the final rule to ensure that the volume requirements that are actually implemented in 2026 and 2027 match those that are published in the rule.”While RFA strongly supports EPA’s proposed 50% reduction in RINs generated for import-based renewable fuels and fully agrees that there are “reduced economic, energy security, and environmental benefits” provided by imported renewable fuels, Cooper said that enhanced recordkeeping and reporting procedures—as contemplated by EPA—are not needed for corn-based ethanol, given that the U.S. does not import corn ethanol, and corn imports make up just one tenth of 1% of the U.S. corn supply.The American Coalition for Ethanol also spoke out in support of many of the proposed rule’s provisions. Brian Jennings, CEO of ACE, said the proposal can “expand domestic ethanol use, support U.S. farmers, strengthen energy security, and lower pump prices.”While ACE supports EPA’s proposed RVOs, Jennings encouraged the agency to consider using its statutory authority to exceed the 15-billion-gallon conventional biofuel threshold. This would help offset the potential impact of lost export markets and ensure U.S. ethanol producers are not displaced by surplus RINs from other categories. In addition, Jennings urged EPA to finalize a rule that adopts its higher-volume scenario for the biomass-based diesel category to strengthen rural economies.&nbsp;Growth Energy stressed that the proposed rule would boost U.S. energy dominance and help support rural prosperity. &nbsp;“If finalized, these RVOs would unlock investments, create jobs, and support growth in rural America by expanding our country’s renewable fuel production and use,” said Emily Skor, CEO of Growth Energy. “By setting conventional biofuel blending volumes at 15 billion gallons for two years, this proposal will create the kind of certainty that spurs innovation and truly unleashes American energy dominance. This is the strongest RFS proposal we’ve ever seen, with the highest volumes ever, showing this administration’s commitment to American biofuel producers and the farmers that depend on them.”&nbsp;Skor also urged EPA to make it clear that small refinery exemptions (SREs) will not be granted recklessly, and that any gallons lost to SREs will be made up in the market.“Only with these pieces in place can this proposal truly deliver the game-changing impact the president wants it to have, and that the nation’s biofuel producers and rural communities are counting on,” she added.Clean Fuels Alliance America encouraged the EPA to maintain the proposed RVOs as it addresses outstanding SRE petitions.&nbsp;“Our industry has made substantial investments over the past several years in both biofuel production, feedstock supply, and distribution infrastructure. Domestic production of biodiesel and renewable diesel has doubled since 2020 and continues to grow. We supplied more than 5 billion gallons of biodiesel, renewable diesel and SAF to the U.S. market in 2024, and we are poised to deliver more in 2026,” said Donnell Rehagen, CEO of Clean Fuels. “EPA’s acknowledgement of the industry’s investments in new capacity and intent to provide consistent RFS growth are greatly appreciated.”Rehagen continued, “We are pleased that since the proposed rule came out the markets have reacted in a positive fashion. However, uncertainty around small refinery exemptions still hangs over the industry. We ask that you sustain the volumes as proposed to ensure that our capacity is fully utilized.”&nbsp;

2025-07-09 - Biofuel groups testify on EPA’s 2026, 2027 RFS proposed rule (4 publications)

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The U.S. EPA on July 8 hosted virtual public hearing to gather input on the agency’s recently released proposed rule to set 2026 and 2027 RFS RVOs. Members of the biofuel industry were among those to offer testimony during the event. 

Biofuel groups testify on EPA’s 2026, 2027 RFS proposed rule

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