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EPA’s 2023–2027 Biomass-Based Diesel RVOs: What Changed

EPA set BBD volumes in gallons for 2023–2025 and in RINs for 2026–2027. Here’s how the base requirements, partial SRE reallocation, and total applicable volumes differ.
From TheFinanceBase Team3 min to read
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EPA set biomass-based diesel (BBD) volumes at 2.82, 3.04, and 3.35 billion gallons for 2023–2025. For 2026–2027, it set base requirements of 8.86 and 8.95 billion renewable identification numbers (RINs), then added partial reallocation of small refinery exemption (SRE) volumes, bringing the applicable totals to 9.07 and 9.20 billion RINs. The figures use different units across the two rule periods, so they should not be read as a direct gallons-to-gallons growth comparison.

What EPA set for BBD in each compliance year

The Renewable Fuel Standard (RFS) requires regulated parties to meet annual renewable-fuel obligations. EPA establishes the standards through rulemaking; the resulting volume figures are legal requirements, not measurements of fuel actually produced, blended, or used.

Compliance year EPA BBD figure Measure in EPA’s published figure How to read it
2023 2.82 billion Gallons Final 2023–2025 Set Rule. EPA also established a separate 0.25-billion-gallon supplemental renewable-fuel requirement for 2023; that is not an additional BBD figure.
2024 3.04 billion Gallons Final 2023–2025 Set Rule.
2025 3.35 billion Gallons Final 2023–2025 Set Rule.
2026 8.86 billion base; 0.21 billion reallocated; 9.07 billion total applicable RINs Final 2026–2027 Set 2 table.
2027 8.95 billion base; 0.25 billion reallocated; 9.20 billion total applicable RINs Final 2026–2027 Set 2 table.

These values are reported in EPA’s Final Renewable Fuels Standards Rule for 2023, 2024, and 2025 and Final Renewable Fuel Standards for 2026 and 2027. The 2023–2025 summary labels its BBD line in physical gallons. The later final table labels its requirements and totals in RINs and explains that one RIN represents one ethanol-equivalent gallon of renewable fuel. That equivalence does not make the two tables’ BBD figures interchangeable: retain EPA’s unit for each period when quoting them.

How SRE reallocation changed the 2026–2027 totals

Small refinery exemptions can exempt eligible refineries from some RFS obligations. In the 2026–2027 Set 2 rule, EPA finalized a 70 percent partial reallocation of volumes exempted for 2023–2025 into the later standards. The table separates each year’s base BBD requirement from the reallocated amount and the resulting total applicable volume.

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The reallocation is partial, not a restoration of the entire exempted volume. EPA said its approach was intended to balance biofuel demand while maintaining a stable, functioning credit market. That is EPA’s stated rationale, not proof that the policy produced a particular market outcome.

What EPA’s production estimate does—and does not—say

EPA said biodiesel and renewable diesel production and use would need to rise by over 60 percent compared with 2025 to meet the 2026–2027 volume levels. This is the agency’s estimate of what meeting the standards would require; it does not mean production or use had already increased by that amount. The rule’s volume requirements and the market’s eventual production, blending, and compliance outcomes are distinct.

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Other Set 2 decisions are separate from BBD volumes

EPA’s March 27, 2026 announcement of the final Set 2 rule also described a partial waiver of the 2025 cellulosic biofuel requirement and removal of renewable electricity as a qualifying RFS fuel. Those are changes to other parts of the program, not adjustments to the BBD figures in the table. EPA identifies April 1, 2026 as the final rule’s publication date.

How the RFS standards fit together

EPA describes the four RFS standards as nested. A renewable fuel or its RIN that satisfies a higher greenhouse-gas threshold may also satisfy a lower-threshold standard; EPA gives advanced biofuel counting toward the total renewable-fuel standard as an example. The program’s regulations are in 40 CFR Part 80, Subpart M.

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For years after 2022, EPA establishes volume targets after considering statutory factors. Its 2023–2025 rule summary lists costs, air quality, climate change, program implementation, energy security, infrastructure, commodity prices, water quality, and supply. EPA’s annual standards page describes notice-and-comment rulemaking and stakeholder engagement as part of the process.

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What these figures mean for households and markets

RVOs are regulatory targets, not a forecast of a specific retail fuel price, household bill, or investment return. The EPA figures establish required volumes and, for 2026–2027, show the added SRE reallocation. They do not by themselves establish how those obligations will affect prices or actual market activity.

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