EPA Finalizes the 2026–2027 Standards
The U.S. Environmental Protection Agency finalized new Renewable Fuel Standard requirements on March 27, 2026, establishing renewable fuel volumes and percentage standards for both 2026 and 2027.
Including the reallocation of volumes associated with small refinery exemptions, total applicable renewable fuel volumes were set at 26.81 billion RINs for 2026 and 27.02 billion RINs for 2027.
The Renewable Fuel Standard requires refiners and fuel importers to ensure specified quantities of renewable fuel enter the U.S. transportation fuel supply. Compliance is tracked through Renewable Identification Numbers, or RINs, with one RIN generally representing one ethanol-equivalent gallon of renewable fuel.
Biomass-Based Diesel Moves Higher
Biomass-based diesel is one of the largest components of the new standards.
EPA set the underlying biomass-based diesel requirement at 8.86 billion RINs for 2026 and 8.95 billion RINs for 2027. After small refinery exemption reallocation is included, the applicable volumes rise to 9.07 billion RINs in 2026 and 9.20 billion RINs in 2027.
The higher levels are relevant to biodiesel and renewable diesel producers as well as agricultural and waste-based feedstock markets supplying the sector.
EPA also finalized advanced biofuel applicable volumes of 11.10 billion RINs for 2026 and 11.32 billion RINs for 2027.
What the Rule Means for the Market
The final rule gives renewable fuel producers, refiners and agricultural markets greater clarity over federal blending requirements for the next two compliance years.
EPA finalized a 70 percent reallocation of volumes associated with small refinery exemptions granted for the 2023–2025 compliance years. The agency also removed renewable electricity, or eRINs, as a qualifying renewable fuel under the Renewable Fuel Standard program.
For producers and investors, mandated volumes can influence expectations for feedstock demand, processing capacity and future renewable fuel infrastructure.
The standards therefore extend beyond regulatory compliance. They will help shape commercial decisions across the U.S. biofuel market through 2027.
Sources
U.S. Environmental Protection Agency — Final Renewable Fuel Standards for 2026 and 2027
U.S. Environmental Protection Agency — EPA Finalizes Historic New Renewable Fuel Standards, March 27, 2026