Renewable Fuel Standard (RFS) Program: Volume Standards for 2026–2027, Partial 2025 Cellulosic Waiver, and eRIN Removal

The U.S. Environmental Protection Agency (EPA) is finalizing rules under the Clean Air Act to set the applicable volume and percentage standards for four categories of renewable fuel — cellulosic biofuel, biomass-based diesel (BBD), advanced biofuel, and total renewable fuel — for calendar years 2026 and 2027. These volume requirements mandate how many renewable fuel credits (RINs) must be retired by obligated parties in the transportation fuel sector. The EPA is also exercising its statutory waiver authority to partially reduce the 2025 cellulosic biofuel volume requirement. This waiver is triggered by a documented shortfall in domestic cellulosic biofuel production capacity, meaning the industry cannot physically supply enough qualifying fuel to meet the original mandate. The associated percentage standard for 2025 is being revised downward accordingly. In a significant policy shift, the EPA is removing renewable electricity (eRINs) as a qualifying pathway under the RFS program. This eliminates the ability of electric vehicle charging using renewable electricity to generate RFS credits, reversing a prior program expansion. Additionally, minor technical revisions are being made to the biogas provisions of the RFS program. These changes collectively affect obligated parties such as refiners, importers, and blenders of transportation fuel, as well as renewable fuel producers, biofuel developers, and electric vehicle infrastructure operators who had previously anticipated eRIN revenue streams.

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