LUBBOCK, TX – EPA’s proposal to fully restore renewable fuel obligations lost through additional 2025 small refinery exemptions could preserve biofuel demand, but the timing of that restoration remains unresolved.
Clean Fuels Alliance America Vice President of Federal Affairs Kurt Kovarik told the Agribusiness Report that EPA is proposing to reallocate 100% of the difference between exemptions previously estimated and those ultimately granted. Clean Fuels puts that difference at 770 million renewable identification numbers.
EPA is considering two approaches. One would split the supplemental volume between 2026 and 2027, while the other would place the full amount into 2027 obligations. Kovarik said his group prefers at least half restored in 2026.
He said delaying all of the volume until 2027 would create additional uncertainty for producers, refiners and companies making long-term investments in biodiesel, renewable diesel and related processing capacity.
The proposal will move through public comment before EPA issues a final rule. Clean Fuels plans to press for completion before year-end and earlier restoration of the waived volume.
Farm-Level Takeaway: Earlier reallocation could provide stronger near-term demand certainty for biofuel producers and farmers supplying renewable-fuel feedstocks.