EPA administrator Lee Zeldin (right) visits Iowa ethanol plant with Rep. Ashley Hinton and RFA CEO Geoff Cooper (left)
The agency is proposing two options for revisions, both of which would reallocate 100% of the difference between projected and actual exempted volumes for 2025 SREs.
One: EPA would divide the additional 2025 SRE volume equally between the 2026 and 2027 compliance years.
Two: EPA would reallocate all the additional 2025 SRE volume to the 2027 compliance year
“In each action taken, EPA works to deliver for all Americans. From our farmers to our energy workers, each has an important role to play in growing our economy and ensuring America’s energy independence,” said EPA Administrator Zeldin.
Zeldin visited Iowa ethanol plant Big River United Energy on Monday with Rep. Ashley Hinton and a number of other industry representatives, including Renewable Fuels Association President and CEO Geoff Cooper, who thanked him for honoring EPA’s commitment to fully restore the renewable fuel volumes lost to recent small refinery exemptions.
“While we believe most of the exemptions were unjustified, EPA’s reallocation plan—if finalized as proposed—will help offset the demand loss for ethanol producers and farmers,” said Cooper. “We look forward to this proposal being swiftly finalized so that renewable fuel producers, refiners, and our partners in agriculture have the certainty they need heading into 2027. With refiners enjoying record-high profit margins, gasoline supplies tightening, and drivers still paying too much at the pump, the Trump administration understands this is no time to undermine domestic biofuels with SREs.”
Cooper added that RFA continues its call for reform of the broken SRE program. “These exemptions were always meant to be a temporary measure to give truly small, independent refiners a little more time to come into compliance with the RFS program. Unfortunately, many so-called small refiners have viewed SREs as an entitlement program and have exploited this loophole for two decades, putting American consumers, farmers, and biofuel producers on the losing end.”
EPA will take public comments on the proposal until December 4, 2026.
Additionally, the proposed revision to the 2026 standards may extend the existing 2026 compliance reporting deadline of March 31, 2027. If finalized, this proposal will ensure that all the benefits of the “Set 2” rule will be realized for American farmers.