ACE Statement on EPA Proposal to Reallocate 2025 Small Refinery Exemption Volumes

The U.S. Environmental Protection Agency (EPA) has proposed reallocating Renewable Fuel Standard (RFS) volumes waived through Small Refinery Exemptions (SREs) for the 2025 compliance year. The proposal follows EPA's August 31 announcement on 34 pending 2025 SRE petitions, which resulted in 1.76 billion RINs being exempted for 29 small refineries. EPA had previously projected approximately 990 million RINs would be exempted for 2025. EPA has proposed reallocating 100% of that difference to the 2026 and 2027 RFS obligations.

American Coalition for Ethanol (ACE) CEO Brian Jennings issued the following statement:

"We appreciate EPA following through on its commitment to address the additional RFS volumes waived through 2025 SREs and proposing to reallocate the full difference between projected and actual exempted volumes. Every gallon of renewable fuel displaced by an SRE represents lost demand for American ethanol, lost value for farmers and a missed opportunity to lower fuel costs for consumers.

"The integrity of the RFS depends on ensuring the volumes established under the program translate into real-world renewable fuel demand. Farmers and ethanol producers need certainty that RFS requirements will not be eroded after the fact by exemptions.

"While this proposed reallocation is an important step, the debate over SREs has held up adoption of year-round E15. Congress must act to provide greater certainty and expand opportunities for ethanol by passing nationwide E15 legislation before the end of the year.

"We will continue working with EPA and participating in the rulemaking process to ensure the 2025 SRE volumes are fully and appropriately reallocated. At the same time, we will continue urging EPA to set strong RFS volumes in its upcoming Set 3 rule that support growing demand for E15 and account for any negative impact from SRE gallons not being fully reallocated."