For 20 years, the RFS has been a bedrock policy that supports hundreds of thousands of American jobs, provides more affordable fuel options at the pump for American drivers, enhances American energy and national security, and reduces emissions.
On June 13, 2025, the Environmental Protection Agency (EPA) released its proposed renewable volume obligations (RVOs) for years 2026-2027. EPA set the highest-ever blending obligations at 24.02 billion RINS (renewable identification numbers) for 2026 and 24.46 billion RINS in 2027, which represent gallons of renewable fuel to be blended into the fuel mix each year. Those figures include 15 billion implied gallons of conventional biofuels (like corn ethanol) for each year, as well as an increasing number of gallons of advanced and cellulosic biofuels.
On August 22, 2025, the EPA released their decision on the almost 200 pending small refinery exemption (SRE) requests, covering compliance years 2016-2024. EPA also announced that it would soon be releasing a proposed rule to take comment on reallocating waived SRE gallons for the 2023 and newer compliance years. While the number of granted SREs is on its face high and we still need to see the key details of EPA’s forthcoming rule on reallocation, EPA’s approach largely clears the backlog of pending SREs and provides positive signals moving forward as we work to finalize the RVO proposal.
Congress intended for SREs to be granted sparingly, as a temporary measure, and only when a refiner demonstrates “disproportionate economic hardship” in complying with the RFS. EPA should treat SREs as extraordinary measures that require a high standard of proof, consistent with the law. EPA should forecast any potential 2026 and 2027 exemptions as part of the final RVO to ensure we blend the full volume of required renewable fuel each year, as the Trump Administration did in 2020. A robust RVO, as currently proposed, supports rural economic growth, energy security and lowers fuel costs for all drivers.