Biofuels industry reaction to SRE decisions mixed

The Environmental Protection Agency announced on Monday that of the 34 companies that filed small refinery exemption (SRE) petitions under the Renewable Fuel Standards program for 2025, the agency granted 18 full exemptions, 11 partial exemptions, denied three petitions and deemed two ineligible. 

After consulting with the Energy Department on the petitions under the Clean Air Act, EPA said it is exempting 1.76 billion RFS compliance credits, known as Renewable Identification Numbers, for 29 small refineries.

EPA will propose to reallocate 100% of the difference between projected and actual exempted volumes for 2025 SREs into the 2026 and 2027 Renewable Volume Obligations before the end of October 2026.

Due to the agency’s 2025 SRE decisions, EPA will also be announcing a direct final rule to extend the 2025 RVO compliance date by 30 days to Oct. 1, 2026.

National Corn Growers Association President Jed Bower said, “While we are disheartened by the high number of SREs that are being granted to exempt small refineries from meeting federal blending requirements, we are thankful that the Trump administration is taking action to offset this development by pledging to reallocate these RINs.”

“Reallocation is essential for protecting farmers, biofuel producers and consumers alike,” Bower said.

The American Soybean Association praised the reallocation of the RINS, “assuring no loss in biofuel demand. Without 100% reallocation in the current period covered by EPA’s Set 2 Rule, ASA had estimated that biomass-based diesel demand would drop by 500 million gallons and soybean farmers would suffer almost a $1 billion loss in revenue.”

Dave Walton, ASA vice president and Iowa soybean farmer, said, “Soybean farmers greatly appreciate President Trump, Sen. [Chuck] Grassley [R-Iowa] along with other biofuel champions in Congress, and USDA officials for sounding the alarm and working around the clock to ensure that soybean farmers and producers of homegrown biofuels are not negatively impacted by today’s SRE announcement.”

“We appreciate the administration’s commitment to reallocating 100% of these additional exemptions and their intention to enter into supplemental rulemaking soon, but timing is critical,” Walton said.

“Any delay in reallocation risks undermining the domestic market demand that soybean farmers urgently need as we enter harvest season. EPA must move quickly to fully reallocate these RINs and ensure soybean farmers are held harmless,” Walton said.

ASA also urged EPA to include 100% reallocation of updated expected SRE levels for 2026 and 2027. ASA said EPA proactively accounted for expected exemptions in setting those volumes, but SRE levels are now expected to be higher if new assessment methodology does not change. 

National Oilseed Processors Association President and CEO Devin Mogler said, “We remain disappointed by the sheer volume of these refinery exemptions and the uncertainty they have injected back into the market.”

“But restoring waived gallons to the established RFS volumes is critical to sustaining domestic growth, creating stronger markets for American farmers, and reducing our reliance on China.

“Getting the supplemental rule right and delivering strong Set 3 volumes are the next steps,” Mogler said.

Kurt Kovarik, vice president of federal affairs for the Clean  Fuels America Alliance, said, “Clean Fuels fundamentally disagrees that small refiners need reprieve from the tepid 2025 RFS volumes set by the prior administration.”

“We appreciate the White House’s commitment to hold biofuel producers harmless and will work with EPA to quickly finalize the promised supplemental rule. We will continue to press the administration to reallocate future small refinery exemptions to ensure they do not harm farmers and other stakeholders in clean fuel production,” Kovarik said.

Renewable Fuels Association President and CEO Geoff Cooper said, “While we continue to believe most of the SREs issued today are completely unjustified, we are somewhat encouraged that EPA is taking steps to minimize the damage through reallocation.”

“The proposed plan laid out by EPA today creates a pathway for ensuring no net loss in renewable fuel demand, and it is crucially important that the agency moves quickly to faithfully implement this approach,” Cooper said.

“At a time when oil refiners are reporting record-high profit margins, gasoline supplies are tightening, and consumers are paying record-high prices at the pump, the administration should focus on efforts to increase — not decrease — the domestic production and use of more affordable biofuels like ethanol.”

Cooper noted that ethanol with a RIN credit attached is selling for $2 per gallon wholesale today, compared to $3.08 per gallon for gasoline, underscoring the fact that ethanol is helping to provide economic relief at the pump for American families.

Growth Energy CEO Emily Skor said, “Our position hasn’t changed — SREs should only be granted when refiners can prove disproportionate economic hardship.”

“It’s difficult to see how these refiners have met this threshold when they’re simultaneously reporting sky-high and, in some cases, record-setting earnings,” Skor said.

“However, we applaud our champions on the Hill for fighting so tirelessly on behalf of homegrown biofuels; their engagement was vital to preserve the promise of the record-setting RVOs finalized earlier this year. And we appreciate the Trump administration’s continued commitment to delivering markets for farmers and biofuel producers. We will work with EPA to fully account for lost biofuel gallons and make producers and farmers whole,” Skor said.

National Farmers Union President Rob Larew said, “We appreciate the administration’s decision to fully reallocate the renewable identification numbers affected by these exemptions, protecting a stable market for family farmers.”

“Farmers spoke out about the harm they’d face without full reallocation, and we appreciate EPA listening to those concerns. The uncertainty around potential changes to the Renewable Fuel Standard has not been helpful at a time when farm country needs predictability,” Larew said. “We’re glad to see the integrity of the program upheld and continued demand for what our farmers grow.”

Last week the American Farm Bureau Federation’s Intel service published a report explaining small refinery exemptions. 

“Farm Bureau opposes small refinery exemptions, but if exemptions are granted, the associated RFS obligations should be reallocated to preserve overall renewable fuel demand the RFS was designed to support,” the report said.

Farm Bureau President Zippy Duvall said Monday, “While we have concerns about granting any small refinery exemptions that undercut a strong domestic biofuels market for farmers, we are pleased to see EPA’s commitment toward 100% reallocation of exempted volumes before the end of October. Reallocation is necessary to maintain robust demand for American grown crops.”

Sen. Amy Klobuchar, D-Minn., the ranking member of the Senate Agriculture Committee who is running for governor of Minnesota, said, “Farmers are already facing the headwinds of the president’s tariffs, rising input costs from the war in Iran, and dwindling international markets, and now the administration is choosing to damage another critical market for American farmers.”

“I led bipartisan efforts to secure strong blending levels through both Republican and Democratic administrations and this announcement walks back that progress. I will continue to fight for stronger blending levels and a reallocation that helps Minnesota farmers,” Klobuchar said.