On September 16, 2025, Clean Fuels Alliance America and a number of biofuel trade groups commended the Environmental Protection Agency (USEPA) as it released a supplementary proposed rule that will reallocate small refinery exemptions for Renewable Fuel Standard (RFS) compliance years that are still open. USEPA’s stated goal is to ensure that the 2026 and 2027 RFS volumes it finalizes later this year are not undermined by the small refinery exemptions announced in August.
On August 22, EPA granted or partially granted 172 small refinery exemptions for years stretching back to 2016; including 56 for 2023 and 2024. In that action, EPA returned 1.4 billion RINs to refiners valid for use to meet the 2024 RFS obligation deadline on December 1 this year and potentially roll forward into 2025 and future compliance. EPA is still evaluating 2025 exemption petitions, but projects it will grant exemptions for another 780 million RINs.
EPA is proposing a supplemental “SRE reallocation volume” to be added to the 2026 and 2027 volumes, which will account for the 2023 – 2025 exemptions granted. They are co-proposing to account for either 50% or 100% of the exempted volumes and requesting public input.
At the same time, EPA is providing an updated estimate of 2026 and 2027 small refinery exemptions that will be included in calculating the RVOs for the final 2026-27 rule. The update will be based on the average of the 2023-25 exemptions granted. EPA will also be updating the proposed percentage standards to account for the new gasoline and diesel projected volumes using AEO2025.
EPA will hold a public hearing on the proposal on Wednesday, October 1. To register to attend or testify, email RFS-Hearing@epa.gov by Wednesday, September 24. The proposal will be open to public comment through October 31.
Originally shared by Clean Fuels Alliance America.
Notice: The Michigan Advanced Biofuels Coalition (MiABC) does not lobby or influence policy in any way. The policy interests of Michigan soybean farmers and biodiesel producers are supported by the Michigan Soybean Association and Clean Fuels Alliance America, respectively. This post is shared for educational purposes only.