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Today, EPA Administrator Lee Zeldin announced the release of the Reallocation of Additional 2025 Small Refinery Exemptions proposed rule. EPA is proposing to add supplemental volumes to the current Renewable Fuel Standards to ensure that the historic standards finalized on April 1 this year are not eroded by the small refinery exemptions granted on August 31.
EPA is proposing and taking comment on two approaches for reallocating 100% of the 770 million RIN difference between estimated and granted 2025 exemptions – split the supplemental volume between 2026 and 2027 obligations or add the full supplemental volume to 2027 obligations.
Kurt Kovarik, Clean Fuels’ Vice President of Federal Affairs, stated, “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.
“The clean fuels industry is delivering on the goals for the RFS and providing a critical supply of lower-cost diesel fuels right now. That contribution is important to control diesel prices and associated consumer costs. We urge EPA to finalize the proposal to add supplemental volumes to both 2026 and 2027 to ensure that the market signal from the robust RFS volumes is clear and immediate.”
American Coalition for Ethanol CEO Brian Jennings issued the following statement:
“We appreciate EPA following through on its commitment to address the additional RFS volumes waived through 2025 SREs and proposing to reallocate the full difference between projected and actual exempted volumes. Every gallon of renewable fuel displaced by an SRE represents lost demand for American ethanol, lost value for farmers and a missed opportunity to lower fuel costs for consumers.
“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.
“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.
“We will continue working with EPA and participating in the rulemaking process to ensure the 2025 SRE volumes are fully and appropriately reallocated. At the same time, we will continue urging EPA to set strong RFS volumes in its upcoming Set 3 rule that support growing demand for E15 and account for any negative impact from SRE gallons not being fully reallocated.”
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.
ACE, Clean Fuels news releases
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