Policy Update

US Clean Fuels Policy is Shifting - Are you ready?

A summary of the proposed EPA Renewable Fuels Standard and the revised Section 45Z Clean Fuel Production Credit.

EPA’s 2026–2027 RFS Proposal: Tighter Rules, Bigger Goals

  • RIN requirements up 9.5% from 2025 to 2027.

  • Domestic biofuels favored — credits for imported fuels cut by 50%.

  • Biomass-based diesel volumes set to jump 70%.

  • Renewable electricity (eRINs) removed from the RFS.

 

Section 45Z Clean Fuel Production Credit: What’s New?

  • The tax credit is extended through 2029 for clean transportation fuels produced in the U.S.

  • $1.00 per gallon baseline credit — with a bonus for sustainable aviation fuel (SAF).

  • Lifecycle GHG emissions must be below 50 kg CO₂e/mmBTU.

  • Crop-based fuels like ethanol and soy diesel are back in play, with ILUC emissions excluded.

  • Imported used cooking oil under scrutiny.

 

Download full policy brief (members only) below for:

  • Credit calculation formulas

  • GREET model updates

  • Anti-stacking rules

  • Detailed fuel eligibility criteria

  • Full implications of the 2027 RFS

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MOBILITYNOTES MEMBERS: Click below to download a PDF with the full summary.

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