The U.S. Environmental Protection Agency (EPA) has issued a supplemental notice of proposed rulemaking to revise renewable fuel volume requirements for 2026 and 2027. The revisions stem from small refinery exemptions granted for compliance years 2023–2025, which reduced the amount of gasoline and diesel that had to be blended with renewable fuels.
EPA said it is considering two approaches: adding back 100% of the previously exempted volumes or restoring 50%. The agency is also seeking feedback on other reallocation levels. Without adjustments, EPA said, unused compliance credits from the exemptions could lower demand for renewable fuel in 2026 and 2027.
The proposal affects how much ethanol, biodiesel and other renewable fuels refiners and importers must blend into the nation’s fuel supply. EPA emphasized in a press statement that the goal is to align final requirements with actual renewable fuel use and provide regulatory certainty for producers and refiners.
Upon publication in the Federal Register, EPA will hold a public hearing and open a 30-day public comment period.
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