EPA’s small refinery exemptions draw mixed reviews

WASHINGTON — The general reaction to the U.S. Environmental Protection Agency’s small refinery exemptions was both concern about the number granted, while also endorsing a plan to reallocate renewable fuel volumes.

The EPA granted 29 full and partial SREs from last year’s mandate blending requirements through the Renewable Fuel Standard, representing 1.76 billion exempted Renewable Identification Numbers.

Here are comments from various commodity and industry leaders regarding the EPA move on Aug. 31.

“Illinois is one of the nation’s leading producers and users of biodiesel, and we look forward to continuing to work with the Trump administration to ensure exempted volumes are fully reallocated within the current compliance year. The decision to reallocate these exempted volumes will help preserve an estimated 500 million gallons of soybean-based biofuel demand and protect approximately $1 billion in soybean farm income.”

Bryan Severs, chairman

Illinois Soybean Growers

“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.

“We need vibrant markets for our products, particularly when it comes to corn ethanol, and the nation’s drivers need affordable fuel. Biofuels are a homegrown solution for increasing our country’s energy supply and reducing fuel costs. Recent history has shown that issuing SREs at this volume does nothing to reduce the price of gas.”

Jed Bower, president

National Corn Growers Association

“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 RFS has not been helpful at a time when farm country needs predictability. We’re glad to see the integrity of the program upheld and continued demand for what our farmers grow.”

Rob Larew, president

National Farmers Union

“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 to toward 100% reallocation of exempted volumes before the end of October. Reallocation is necessary to maintain robust demand for American grown crops. We called on the president to carefully consider the impact of changes to the RFS that would destabilize this important market, and we’re pleased that our concerns were heard.

“Farmers are proud to answer the call to help meet America’s energy needs. Farm Bureau looks forward to working with the administration to ensure 100% reallocation of exempted renewable fuel volumes, strengthening the biofuels market that supports America’s farmers while moving our country closer to energy independence.”

Zippy Duvall, president

American Farm Bureau Federation

“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. 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. ASA also urges EPA to include 100% reallocation of updated expected SRE levels for 2026 and 2027.

“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. Addressing updated 2025-2027 SRE levels together would protect the integrity of the RFS and avoid the need for annual supplemental rule-makings.”

Dave Walton, president

American Soybean Association

“The criticism of small refinery exemptions misses the larger issue. Shifting obligations onto other refiners does not make the costs disappear. Those added compliance burdens have helped drive RIN prices sharply higher, adding more than 30 cents per gallon to fuel costs, and increasing volatility in the RIN market.

“The existential problem is that EPA is layering reallocated obligations on top of mandates that already risk exceeding the volumes the domestic biofuel industry can realistically produce. Multiple analysts have warned the combination of higher mandates and reallocated, exempted volumes could leave the market short of RIN compliance credits to meet EPA’s requirements, which will have to be filled by imports.

“Additionally, because refiners need RIN credits to meet federal blending requirements, a shortage of those credits could force refiners to produce less fuel, tightening supplies and adding additional pressure to increase fuel prices due to the resulting supply-demand imbalance.

“America’s farmers are already feeling the impact of elevated diesel prices, which have been compounded by higher RFS compliance costs. Agricultural groups understandably want policies that strengthen demand for American crops, but policymakers cannot pursue that objective while ignoring the costs those policies impose on farmers, who rely on fuel to plant, harvest and transport their crops.

“If unrealistic mandates and credit shortages further constrain fuel supplies, the people who depend on reliable fuel will bear the consequences. Policymakers should focus on protecting fuel affordability and supply reliability, not doubling down on policies that increase costs and threaten both energy and agricultural security.”

Fueling American Jobs Coalition