Developments concerning Transportation, Air Quality, and Global Warming
In the first half of 2025, the Environmental Protection Agency (EPA) has been actively engaged in making significant regulatory announcements and proposals concerning renewable fuels and related issues.
On January 3, 2025, the EPA granted waivers for California's Transport Refrigeration Unit (TRU) amendments, In-Use Off-Road Diesel-Fueled Fleet amendments, and Commercial Harbor Craft amendments. A week later, on January 7, 2025, the EPA also granted a waiver for California's Commercial Harbor Craft amendments.
One of the key developments in the renewable fuel sector occurred on June 13, 2025, when the EPA proposed volume requirements and percentage standards under the Renewable Fuel Standard (RFS) program for 2026 and 2027. The proposal includes standards for cellulosic biofuel, biomass-based diesel (BBD), advanced biofuel, and total renewable fuel. The EPA also partially waived the 2025 cellulosic biofuel volume requirement due to a shortfall in production, revising the associated percentage standard accordingly.
Additional proposed changes involve reducing Renewable Identification Numbers (RINs) generated for imported renewable fuels and those produced from foreign feedstocks, and the removal of renewable electricity as a qualifying renewable fuel (eRINs) under RFS. Public comments on this proposal are due by August 8, 2025, with a public hearing to be announced soon.
The EPA's actions regarding renewable fuels were influenced by a recent D.C. Circuit court decision in June 2025, which ordered the EPA to re-examine its 2023-2025 biofuel standards, particularly concerning environmental impacts on endangered species. The court did not vacate the standards but required further explanation from EPA and the Fish and Wildlife Service on their reasoning.
Meanwhile, the EPA has not made any new regulations or announcements on contrails or fuel volatility waivers during this period. However, in July 2025, the EPA published new resources on contrail formation.
In other news, the EPA issued a waiver allowing E15 gasoline-gasoline that uses a 15 percent ethanol blend to continue to be sold from May 1, 2025, to May 20, 2025. The EPA also finalized an extension of the Renewable Fuel Standard compliance reporting deadline for the 2024 compliance year on March 7, 2025, and finalized a partial waiver of the 2024 cellulosic biofuel volume requirement on June 13, 2025.
As the EPA continues to shape the future of renewable fuels, it is expected that the ongoing regulatory reviews and public consultations will play a crucial role in determining the direction of the industry. The public comment period for the EPA's proposed volume requirements and percentage standards for renewable fuels under the RFS program for 2026 and 2027 is currently open, and a public hearing is to be announced soon.
[1] EPA Proposes 2026-2027 Renewable Fuel Volume Requirements and Percentage Standards Under the RFS Program (https://www.epa.gov/newsreleases/epa-proposes-2026-2027-renewable-fuel-volume-requirements-and-percentage-standards) [2] EPA to Reconsider Greenhouse Gas Regulatory Findings (https://www.epa.gov/newsreleases/epa-to-reconsider-greenhouse-gas-regulatory-findings) [3] Court Orders EPA to Re-examine Biofuel Standards (https://www.epa.gov/newsreleases/court-orders-epa-re-examine-biofuel-standards) [4] EPA Seeks New Air Advisers (https://www.epa.gov/newsreleases/epa-seeks-new-air-advisers) [5] Growth Energy Supports EPA’s Proposed 2026-2027 Renewable Volume Obligations (RVOs) (https://www.growthenergy.org/press-releases/growth-energy-supports-epas-proposed-2026-2027-renewable-volume-obligations-rvos)
- The EPA's proposal for 2026 and 2027 renewable fuel volume requirements and percentage standards aims to address climate change by promoting the use of cleaner and more sustainable energy sources, such as cellulosic biofuel and biomass-based diesel.
- The ongoing regulatory reviews and public consultations on renewable fuels, led by the EPA, are crucial for the industry as they may influence the direction of investment and research in environmental-science, particularly in relation to air pollution and climate change.
- In recognition of the environmental impacts of renewable fuel production on the environment, the EPA was ordered by a D.C. Circuit court to re-examine its previous biofuel standards, specifically with regards to the endangered species, thus underlining the interconnectedness of the industry, science, finance, and the environment.
- The EPA's action on renewable fuels extends to the transportation sector as well; for instance, it issued waivers for various California amendments concerning transport refrigeration units, in-use off-road diesel-fueled fleets, and commercial harbor craft, aiming to reduce pollution and improve the overall air quality.
- In order to foster growth in the renewable fuel sector and encourage industry investment, stakeholders like Growth Energy are closely monitoring the EPA's proposed volume requirements and percentage standards for renewable fuels under the RFS program for 2026 and 2027, and are actively engaging in the public dialogue on these matters, indicating a collective commitment to integrating renewable fuels into the broader economy and addressing climate change.
