Renewable Fuel Standard (RFS)
The Environmental Protection Agency (EPA) released new, two-year renewable volume obligations in March 2026. NACS supported this move to provide greater certainty to the market over a longer time period than the agency had in the past.
EPA’s two-year RVOs provide market clarity through 2028.
The Issue
The Renewable Fuel Standard (RFS) mandates renewable fuels in the fuel pool each year. The Environmental Protection Agency (EPA) is responsible for establishing and implementing regulations to ensure that the nation’s transportation fuel supply contains the mandated biofuels volumes. However, the volumes required can vary from statutory targets. This happens when EPA exercises its “waiver” authority when certain criteria are met. The EPA is supposed to finalize the obligated volumes of renewable fuels for a particular year by November of the year before. NACS has long advocated for EPA to set RVOs for multiple years at once in order to provide market certainty. EPA has now done that for the first time.
Retail Impact
The convenience and fuel retailing industry sells over 80% of the motor fuels in the United States. Policies that affect motor fuels – what and how to sell, store, label, dispense, price and tax fuel – can have a dramatic impact on the industry.
NACS Position
NACS supports market certainty and EPA setting ambitious but achievable RVOs that do not exceed the amount that can be blended into the fuel supply. In addition, the RFS point of obligation should remain with the manufacturer or importer of the fuel (not moved to the blender) and more transparency and clarity should be added to the small refiner exemption process.
Latest Updates
EPA has released RVOs covering 2026 and 2027. This provides greater market certainty over a longer time period than retailers have had in the past.
