US EPA to Finalize Biofuel Rules in Early 2026

The U.S. Environmental Protection Agency expects to finalize new Renewable Fuel Standard rules for 2026 and beyond in the first quarter of 2026.

The U.S. Environmental Protection Agency (EPA) has announced it expects to finalize biofuel rules governing the Renewable Fuel Standard (RFS) program for 2026 and beyond in the first quarter of 2026. This timeline sets the regulatory clock for the nation's largest biofuels policy, which mandates blending volumes of ethanol, biodiesel, and advanced biofuels into the nation's transportation fuel supply. The upcoming rules are critical for providing long-term certainty to agricultural markets and the energy industry, dictating investment in production capacity and clean fuel infrastructure.

This regulatory timeline follows a period of legal uncertainty and annual delays that have plagued the RFS. Finalizing the multi-year rules is a key deliverable for the EPA to restore program stability. This matters because clear, ambitious volume targets are essential to drive continued investment in next-generation biofuels like sustainable aviation fuel (SAF) and renewable diesel, which are central to decarbonizing hard-to-electrify transport sectors like aviation and shipping.

For biofuel producers, oil refiners, and corn growers, the implications are financial and operational. The impending rules necessitate preparation for new compliance obligations and potential shifts in feedstock demand. The forecast is for intense lobbying over the final volume numbers, particularly for conventional biofuels versus advanced categories. Decision-makers must model scenarios based on the proposed rules and engage in the public comment period. The next imperative for the EPA is to ensure the final rules are legally durable and scientifically sound, balancing climate benefits with economic impacts to create a viable pathway for the transportation sector to contribute to national emissions reduction goals.