The White House Office of Management and Budget on June 11 concluded its review of two Renewable Fuel Standard rulemakings, including a proposed rule to set new renewable volume obligations (RVOs) and a final rule for a partial waiver of the 2024 cellulosic RVO. Both rulemakings had been under review by the OMB since May 14. 

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. According to OMB records, representatives of the Advanced Biofuels Association, Kinder Morgan, Gevo Inc., OPAL Fuels, the Sustainable Advanced Biofuel Refiners Coalition, NATSO, the Renewable Natural Gas Coalition, Growth Energy, Clean Fuels Alliance America, the Renewable Fuels Association, Amp Americas, the American Biogas Council, American Petroleum Institute, Fuels America, and National Oilseed Processors Association are among those who met with OMB officials during the review process. 

With the interagency review process is complete, the EPA is expected to soon publish the proposed rule in the Federal Register and open a public comment period.

The OMB has also concluded its review of a final rulemaking to partially waive the 2024 cellulosic RVO. At part of the review process, the agency met with representatives of the Small Refineries Coalition and Wynnewood Refining Co., RFA, Amp Americas, NATSO and SIGMA, the RNG Coalition, Marathon Ashland Petroleum Co., and American Fuel and Petrochemicals Manufacturers. 

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. 

The EPA in March took action on the deadline component of its proposal, issuing a final rule extending the 2024 RFS compliance deadline. With OMB review of the waiver portion of the proposal now complete, the EPA is expected to soon promulgate a final rulemaking pertaining to the waiver portion of its initial proposal.