EPA's RFS Decisions to Increase Biomass-Based Diesel Production and Feedstock Use for 2026-2027
The U.S. EPA's decisions on the Renewable Fuel Standard for 2026-2027 include higher renewable volume obligations and stricter small refinery exemptions, leading to increased biomass-based diesel requirements. The controversial half-RIN proposal, which limits imported biofuel and feedstock, may be eliminated, with RVOs raised to compensate. This article projects biomass-based diesel production and feedstock use under these new guidelines.
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The U.S. EPA has released decisions affecting the Renewable Fuel Standard (RFS) for 2026-2027, resulting in higher renewable volume obligations (RVOs) and stricter small refinery exemptions. The elimination of the half-RIN provision, which restricts imported biofuel and feedstock to 50 percent of domestic RINs, is anticipated.
Projections for biomass-based diesel production and feedstock use reflect these changes. RVOs are updated based on multiple EPA rulemakings, including proposed RVOs, small refinery exemptions, and a new methodology for obligated petroleum volumes. Two reallocation scenarios for small refinery exemptions are considered: 100 percent and 50 percent.
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