Today, the U.S. Environmental Protection Agency (EPA) finalized Renewable Volume Obligations (RVOs) for the 2026 and 2027 compliance years under the Renewable Fuel Standard (RFS) ‘Set 2’ Rule, including finalizing a 70% partial reallocation of the 2023–2025 granted small refinery exemptions (SREs). American Coalition for Ethanol (ACE) CEO Brian Jennings issued the following statement in response:
“Congress intended year-to-year renewable fuel blending to increase under the RFS and today’s announcement with the highest-ever volume obligations helps fulfill their intention. We’ve consistently advocated for strong final blending obligations for 2026 and 2027 reflecting the full potential of the RFS and ensuring small refinery exemptions (SREs) do not erode demand for renewable fuels. It is critical that EPA set blending requirements at levels that fully account for any SREs granted. Failing to do so risks undermining the intent of the RFS by allowing obligated parties to rely on surplus Renewable Identification Numbers (RINs) rather than driving actual blending and use of renewable fuels.
“The integrity of the RFS depends on ensuring volume obligations translate into real-world demand. Any gap between required volumes and actual blending undermines the program and creates uncertainty for ethanol producers, farmers, and rural communities.
“Importantly, EPA has the authority to set volumes that require more than 15 billion gallons of conventional biofuels annually. We would encourage EPA to seriously consider higher volumes next year to account for any negative impact from SRE gallons not being fully reallocated and for potential E15 increases.
“When properly implemented, the RFS strengthens U.S. energy security, supports America’s farmers and rural communities, saves consumers money at the pump, and cleans the air for everyone. ACE remains committed to working with EPA and the Administration to ensure the program delivers on these goals, including as the Agency begins developing future volume requirements for 2028 and beyond.”