ACE News

ACE Testifies on EPA's 2026-2027 RFS Proposal

Written by ACE | July 8, 2025

American Coalition for Ethanol (ACE) CEO Brian Jennings testified today during the U.S. Environmental Protection Agency’s (EPA) virtual hearing on the Agency’s proposed Renewable Fuel Standard (RFS) renewable volume obligations (RVOs) for 2026 and 2027.

Jennings welcomed EPA’s “Set 2” proposal, noting it can “expand domestic ethanol use, support U.S. farmers, strengthen energy security, and lower pump prices.”
Among the Set 2 provisions ACE finds encouraging are:
  • Setting multi-year blending obligations, and, striving to get the RFS implementation schedule back on track, particularly for 2027;
  • Ensuring blending obligations will remain whole for 2026 and 2027, even if the Agency permits any Small Refinery Exemptions (SREs) for those compliance years;
  • Proposing the new import RIN reduction to support America’s farmers and rural communities; and
  • Setting strong RVOs.

While ACE supports EPA’s proposed RVOs, Jennings encouraged the Agency to consider using its statutory authority to exceed the 15-billion-gallon conventional biofuel threshold. This would help offset the potential impact of lost export markets and ensure U.S. ethanol producers are not displaced by surplus RINs from other categories. In addition, Jennings urged EPA to finalize a rule that adopts its higher-volume scenario for the biomass-based diesel category to strengthen rural economies.

ACE highlighted its ongoing efforts to establish the link between low carbon farming practices and the 45Z clean fuel production tax credit recently extended by Congress. Jennings emphasized the importance of rewarding farmers for implementing practices that reduce the carbon intensity of ethanol.

“In partnership with USDA, DOE, 13 ethanol companies, and hundreds of farmers, ACE is currently leading a project to unlock new markets and tax credits, such as 45Z, based on low carbon farming,” Jennings said.

ACE will provide more detailed recommendations in its forthcoming written comments to EPA. Jennings full testimony can be accessed here.