Biofuel stakeholders generally reacted positively to the supplemental rule proposed by Environmental Protection Agency Tuesday that offers a reallocation plan to offset small refinery exemption decisions issued as part of the August 2025 SRE Decisions Action.

EPA is co-proposing additional volumes representing complete (100 percent) reallocation and 50 percent reallocation for SREs granted in full or in part for 2023 and 2024, as well as those projected to be granted for 2025, as part of the ongoing RFS rulemaking. EPA is also providing more information on its projection of SREs to inform the calculation of the 2026 and 2027 percentage standards.

Renewable Fuels Association President and CEO said they are encouraged that EPA is proposing to add the exempted volumes back to future RFS requirements for 2026 and 2027. “We support EPA’s proposed option to fully reallocate 2023-2025 SREs and believe such an approach will ensure intended levels of renewable fuel consumption are maintained over the long-term. We appreciate that EPA continues to focus on SRE approaches that minimize marketplace disruptions, while honoring the congressional purpose and intent of the RFS program,” said Cooper.

Clean Fuels Alliance America welcomed the proposal. “Clean Fuels commends EPA for proposing to ensure that the RFS volumes it finalizes for upcoming years are not eroded by small refinery exemptions,” said Kurt Kovarik, Clean Fuels’ Vice President of Federal Affairs. “U.S. biodiesel and renewable diesel production supports ten percent of the value of every bushel of soybeans grown here. It is one bright spot in the agricultural economy this year. Clean Fuels and its members will work to ensure that the final RFS volumes for 2026 and 2027 fully support continued growth in biomass-based diesel production and provide real value for farmers.”

EPA will hold a virtual-only public hearing on October 1, 2025, for the proposed rule. There will be no in-person hearing.