May 16, 2025
BY Erin Krueger
The U.S. EPA on May 14 delivered two Renewable Fuel Standard rulemakings to the White House Office of Management and Budget, beginning the interagency review process. One rule focuses on RFS renewable volume obligations (RVOs) and the other focuses on a partial waiver of the 2024 cellulosic RVO.
The proposed rule to set new RFS RVOs is formally titled “Renewable Fuel Standard (RFS) Program: Set 2.” While no details have been made public, a brief summery posted to the OMB website indicates the rulemaking is expected to include 2026 RVOs for cellulosic biofuel, advanced biofuel, biobased diesel and total renewable fuel. According to the OMB, the “action also contains several regulatory changes to the RFS program intended to improve the program’s implementation.”
The OMB interagency review process marks a final step before a proposed rulemaking is released for public comment. The OMB review process aims to ensure agency-proposed regulations align with White House priorities and offers an opportunity to various federal agencies to weigh in the proposal. Trade groups, industry representatives and other members of the public can request to meet with government officials to discuss the proposed regulatory actions during the review period. Once the interagency review process is complete, the EPA will publish the proposed rule in the Federal Register and open a public comment period.
The EPA also delivered a final rule to the OMB that is expected to implement a partial wavier of the 2024 RFS RVO for cellulosic biofuel. The agency in December 2024 first proposed plans to issue the partial cellulosic waiver and extend the 2024 RFS compliance deadline. At that time, the EPA proposed to reduce the 2024 cellulosic RVO from 1.09 billion renewable identification numbers (RINs) to 880 million RINs.
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The EPA in March took action on the deadline component of its proposal, issuing a final rule extending the 2024 RFS compliance deadline. The agency is now preparing to take final action on the partial waiver portion of its proposal.
Additional information is available on the White House OMB website.
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