EPA revises RFS RVO SRE decisions
The Environmental Protection Agency this week issued supplemental notice of proposed rulemaking (SNPRM) that revises the proposed Renewable Fuel Standard “Set 2” renewable volume requirements (RVOs) for 2026 and 2027 to account for the small refinery exemption (SRE) decisions issued on Aug. 22.
In a news release, EPA said, “This proposal is an important step in the EPA’s tireless work to repair the damage done after four years of the Biden-Harris administration neglecting key components of the RFS program, including threats to transform the RFS program into a subsidy for electric vehicle charging stations as part of a larger strategy to electrify the transportation sector. The Trump administration reaffirms its renewed commitment to honor the program’s purpose to support biofuels as an essential part of a thriving liquid fuels market.”
Renewable Fuels Association President and CEO Geoff Cooper said, “While we continue to question whether any SREs for 2023-2025 are truly justified in the first place, we 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. EPA clearly recognizes that an unmitigated influx of RIN credits from SREs could devastate markets and undermine renewable fuel production and consumption. As this is only a proposal, we look forward to working with EPA to ensure its final rule appropriately upholds the integrity of the RFS program, supports America’s farmers, and strengthens our nation’s energy and economic security.”
Growth Energy CEO Emily Skor said, “With this proposal, EPA acknowledges how important biofuels like ethanol are to the rural economy. We commend the Trump EPA for being the first-ever EPA to propose a way to ensure past-year SRE gallons don’t compromise renewable fuel demand. Full reallocation of exempt gallons is a surefire way to drive income to America’s rural communities. We look forward to providing detailed comments on how EPA can align the final rulemaking with the president’s energy dominance agenda while maintaining the integrity of the RFS and delivering the greatest possible benefit to American agriculture.”
The American Soybean Association said the rule offers two options for reallocation — 100% or 50% of exempted renewable fuel volumes — and said ASA “strongly supports 100% reallocation to uphold the integrity of the Renewable Fuel Standard.”
Clean Fuels Alliance America Vice President of Federal Affairs Kurt Kuvarick said, “Clean Fuels commends EPA for proposing to ensure that the RFS volumes it finalizes for upcoming years are not eroded by small refinery exemptions. U.S. biodiesel and renewable diesel production supports 10% of the value of every bushel of soybeans grown here. It is one bright spot in the agricultural economy this year.”
National Oilseed Processors Association President and CEO Devin Mogler said, “We appreciate EPA’s thoughtful approach in addressing the small refinery exemptions inherited from the previous administration and urge the agency to fully account for all waived gallons. NOPA applauds the EPA for maintaining the policy of prospectively accounting for future SREs, and encourages the agency to swiftly finalize the 2026-2027 RVO proposal, inclusive of the import-RIN discount, to provide the certainty the market needs to invest and grow.”
