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Renewable fuels leaders say historic RVO levels bring needed certainty and optimism

The president and CEO of the Renewable Fuels Association says the EPA’s announced Renewable Volume Obligations (RVOs) for 2026 and 2027 are a historic win for the industry and agriculture.

Geoff Cooper tells Brownfield the new levels mean around 15% of the nation’s fuel supply will be comprised of renewable fuels. 

“The EPA is finalizing requirements of roughly 27 billion gallons of renewable fuel.”  He says, “That’s up about 4 1/2 billion gallons from the 2025 requirement. So, this is not just a little incremental baby step forward. This is a big leap forward.”

He says bolstering the Renewable Fuel Standard (RFS) is bound to drive demand for feedstocks like corn, soybeans, and sorghum.

“USDA and EPA are estimating that additional demand will add another $3 or $4 billion to net farm income in this calendar year and next calendar year.”  He says, “And of course, we know how desperately needed that is in the sector today.”

Cooper says the announced RVO levels provide needed certainty for the ethanol, biodiesel, and renewable diesel industries and they also benefit consumers by lowering prices at the pump. 

He says how the EPA handles small refinery exemptions (SREs) over the next two years could be key to just how much boon the policy brings.

“So we are, I’d say, mostly happy with the way EPA handled reallocation.”  He says, “In terms of some of the previous exemptions that they gave out for 2023, ‘24, and ‘25, they’re taking most of that volume, 70% of it, and also adding that to these requirements. So, we’re getting some of that back as well.”

In a release, Brian Jennings, CEO of the American Coalition for Ethanol, stated, “Congress intended year-to-year renewable fuel blending to increase under the RFS and today’s announcement with the highest-ever volume obligations helps fulfill their intention. It is critical that EPA set blending requirements at levels that fully account for any SREs granted. The integrity of the RFS depends on ensuring volume obligations translate into real-world demand.”

Both say a strong RFS bolsters U.S. energy security and supports America’s farmers and rural communities.

AUDIO: Geoff Cooper – RFA