In a landmark proposal issued June 13, the U.S. Environmental Protection Agency charted aggressive new goals for the Renewable Fuel Standard (RFS) for 2026 and 2027, while strengthening incentives for domestic biofuel production and curbing advantages for imported fuels .

Ambitious Volume Targets
The EPA's draft rule increases total renewable fuel volumes to 24.02 billion RINs in 2026 and 24.46 billion RINs in 2027—up from the 2023–2025 levels of 21.54–22.33 billion. Advanced biofuels would soar to 9.02 billion RINs in 2026 and 9.46 billion in 2027. Biomass-based diesel (BBD) is set to jump from 5.36 billion to 7.12 billion RINs and further to 7.50 billion RINs. Notably, traditional renewable fuel remains flat at 15 billion RINs each year.

Partial 2025 Waiver for Cellulosic Biofuel
EPA proposes trimming the 2025 cellulosic biofuel requirement from 1.38 billion to 1.19 billion RINs, citing a projected 190 million RIN shortfall. The proposal unlocks cellulosic waiver credits to compensate obligated parties.

Import RIN Reductions for a Domestic Focus
Under a new import RIN reduction policy, renewable fuels—and those made from foreign feedstocks—would earn only half the RINs compared with their U.S.-produced counterparts. The measure, prompted by a steep rise in imported biodiesel and renewable diesel—from 25 percent of supply in 2021 to 45 percent in 2024—is designed to bolster domestic agriculture, energy security, and rural economies.

Eliminating eRINs and Updating Equivalence Values
EPA also seeks to remove “renewable electricity” (eRINs) from the RFS, concluding that electricity lacks the statutory definition of “renewable fuel.” The rule would adjust equivalence values for renewable diesel, jet fuel, and naphtha, reform RIN calculation methods, refine biodiesel/renewable diesel standards, update fuel pathway definitions, and strengthen compliance and liability provisions.

Market and Policy Impacts
These updates reflect a regulatory shift to foster U.S.-based biofuel production and reduce RIN market volatility from imported sources. EPA underscores the changes' alignment with national energy goals and congressional intent under the Clean Air Act, Energy Policy Act, and Energy Independence and Security Act .

Comment Period: Stakeholders have until August 8, 2025, to submit feedback under Docket ID EPA-HQ-OAR-2024-0505. EPA will issue supplemental details soon on scheduled public hearings.

Source:
U.S. Environmental Protection Agency, “Renewable Fuel Standard Program: Standards for 2026 and 2027, Partial Waiver of 2025 Cellulosic Biofuel Volume Requirement, and Other Changes” (June 13, 2025)