Biofuels and agricultural stakeholders were pleased to see the U.S. Environmental Protection Agency (EPA) propose reallocating 100 percent of the Renewable Fuel Standard (RFS) volumes recently waived by the agency through Small Refinery Exemptions (SREs) for the 2025 compliance year. However, some also expressed reservations about the continuation of the exemption process going forward and its impact on increasing demand for biofuels.
“The integrity of the RFS depends on ensuring the volumes established under the program translate into real-world renewable fuel demand. Farmers and ethanol producers need certainty that RFS requirements will not be eroded after the fact by exemptions,” said American Coalition for Ethanol (ACE) CEO Brian Jennings. “While this proposed reallocation is an important step, the debate over SREs has held up adoption of year-round E15. Congress must act to provide greater certainty and expand opportunities for ethanol by passing nationwide E15 legislation before the end of the year.”
The proposal follows EPA’s August 31 announcement on 34 pending 2025 SRE petitions, which resulted in 1.76 billion RINs being exempted for 29 small refineries. EPA had previously projected approximately 990 million RINs would be exempted for 2025. EPA has proposed reallocating 100% of that difference to the 2026 and 2027 RFS obligations.
“We are pleased to see that the administration has kept its pledge to protect farmers and biofuel producers while administering this critical program, and we appreciate that biofuel producers will be kept whole with the reallocation of all waived volumes,” said National Corn Growers Association president Matt Frostic. “We hope that the Renewable Fuel Standard and the small refinery exemption program are managed with certainty in the years to come.”
Clean Fuels Alliance America Vice President of Federal Affairs Kurt Kovarik said, “Clean Fuels appreciates Administrator Lee Zeldin’s effort to keep the Renewable Fuel Standard volumes on track and to release this proposal earlier than originally promised. As a result of this year’s historic RFS proposal, the U.S. biodiesel, renewable diesel, and SAF industry has invested billions of dollars in rural America, created new job opportunities, and massively increased domestic production of fuel to secure America’s energy dominance.”
American Soybean Association Vice President Dave Walton said they support the proposal and urge EPA to finalize this supplemental rulemaking to reallocate biofuel volumes as quickly as possible. “Soybean farmers are navigating a tough farm economy, and the administration’s strong domestic biofuel policies will continue to drive much-needed market demand in the U.S. We are encouraged by today’s proposal and urge EPA to get it across the finish line quickly.”