A major refining industry group is challenging the Environmental Protection Agency’s latest Renewable Fuel Standard requirements, setting up a new legal battle over federal biofuel policy. The American Fuel & Petrochemical Manufacturers, or AFPM, filed a lawsuit in the U.S. Court of Appeals for the D.C. Circuit challenging EPA’s finalized 2026-2027 Renewable Fuel Standard volumes. AFPM argues the rule places excessive compliance costs on fuel refiners and could ultimately increase costs for consumers. According to the organization, compliance costs under the new mandate recently surpassed 35 cents per gallon and could exceed $106 billion over the next two years. The group contends the rule is impractical and economically burdensome. AFPM President and CEO Chet Thompson said, “This is the inevitable consequence of EPA finalizing an unlawful, impracticable regulation.” The lawsuit comes as biofuel policy remains a key issue for both the refining industry and agricultural groups that support renewable fuel demand.
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