WASHINGTON, DC – The Environmental Protection Agency is proposing to add back renewable fuel gallons waived under Small Refinery Exemptions (SREs) for 2023–2025 into future Renewable Fuel Standard (RFS) obligations, drawing support from the Renewable Fuels Association. EPA laid out two options: fully reallocate all exempted volumes to the 2026–2027 standards, or reallocate half. RFA President & CEO Geoff Cooper said the group favors full reallocation to “maintain intended levels of renewable fuel consumption” and avoid a destabilizing surge of excess RINs, while still minimizing market disruption. Once the supplemental proposal is published in the Federal Register, a 45-day public comment window will open.
For agriculture, restoring waived gallons would help preserve demand for corn ethanol and soy-based biodiesel/renewable diesel, particularly after a year of uncertainty around SREs. The agency signaled it wants to uphold congressional intent and protect RFS integrity, which could steady RIN values and bolster crush margins and coproduct demand. Stakeholders across farming, biofuels, and refining will now weigh in before EPA finalizes the approach for 2026–2027.
Farm-Level Takeaway: Full reallocation would be a positive for corn and soybean demand and RIN market stability; a half-reallocation would still help, but to a lesser degree. Watch for the Federal Register notice to track timing and next steps.