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Farm Groups Back EPA Refinery Exemptions but Urge Full Reallocation

Farm groups welcomed parts of EPA’s small refinery exemption decision but pressed for full reallocation. EPA later finalized 70% reallocation for 2023–2025 volumes and left a separate 2025 proposal pending.
From TheFinanceBase Team3 min to read
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Farm and biofuel groups welcomed parts of the U.S. Environmental Protection Agency’s August 2025 decision on small refinery exemptions, but warned that exemptions could reduce demand for renewable fuels unless EPA replaced the exempted volumes. EPA later finalized 70% reallocation for certain exempted volumes from 2023–2025, not the full reallocation the groups had urged. A separate 100% reallocation plan for 2025 exemptions remained a proposal as of October 8, 2026.

What EPA decided on small refinery exemptions in August 2025

The Renewable Fuel Standard (RFS) requires obligated parties to meet renewable-fuel targets, in part through Renewable Identification Numbers (RINs), credits used to demonstrate compliance. Small refineries can petition EPA for an exemption from those obligations. The U.S. EPA’s August 2025 action addressed 175 petitions from 38 refineries seeking relief for compliance years 2016–2024.

EPA granted full exemptions to 63 petitions and partial, 50% exemptions to 77. It denied 28 petitions and deemed 7 ineligible. The agency said it reviewed petitions in consultation with the Department of Energy and considered statutory and other economic factors. The decision therefore granted relief in many cases, but it did not approve every petition. EPA’s August 2025 petition decisions

Why farm and biofuel groups welcomed the move but wanted more

The organizations quoted by Successful Farming shared concern that refinery exemptions could weaken renewable-fuel demand and called for a predictable RFS. Their emphasis differed: some focused on replacing exempted gallons, while others also highlighted ethanol markets and access to E15. The publication says some statements were edited or condensed for style and clarity; the positions below are attributed to the groups, not presented as EPA findings. Successful Farming’s August 25, 2025 account of the groups’ responses

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American Farm Bureau Federation

President Zippy Duvall praised renewable fuels’ role in the rural economy and said farmers depend on robust renewable volume obligations (RVOs), the required volumes of renewable fuel under the RFS. The federation urged EPA to ensure exempted volumes were replaced through reallocation. Claims about effects on farm income, pollution, and energy independence were the organization’s stated rationale.

Growth Energy

CEO Emily Skor said the exemption decision alone did not give farmers and biofuel producers the certainty they needed. She called for EPA to reallocate “each and every exempt gallon.” The quotation is reproduced by Successful Farming, which notes that statements were sometimes edited or condensed.

Iowa Renewable Fuels Association

Executive Director Monte Shaw welcomed the action but argued that full reallocation of newer exemptions was vital. He also pointed to uncertainty around upcoming RFS blending rules. Successful Farming reproduced his statement that “Full and complete reallocation of the 2023 and newer SREs is the vital point.”

National Corn Growers Association

President Kenneth Hartman Jr. described EPA’s action as a step toward resolving a longstanding issue. He also highlighted ethanol demand and year-round nationwide access to E15 as priorities.

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Renewable Fuels Association

President and CEO Geoff Cooper welcomed what he characterized as a minimally disruptive approach and emphasized full reallocation of relevant exempted volumes. He disputed the economic-hardship basis for exemptions; that is the association’s position, not an independently established conclusion.

What EPA finalized for 2026 and 2027

On March 27, 2026, EPA finalized RFS volumes for 2026 and 2027 and set partial reallocation at 70% of exempted volumes for 2023–2025 into those compliance years. That was a final policy outcome, distinct from the groups’ earlier call for full reallocation. EPA’s table lists the following figures in billion gallons:

Fuel category 2026 reallocation 2027 reallocation Total applicable volume, 2026 Total applicable volume, 2027
Renewable fuel 0.99 1.04 26.81 27.02
Advanced biofuel 0.28 0.34 Not stated separately in the cited EPA table Not stated separately in the cited EPA table
Biomass-based diesel 0.21 0.25 Not stated separately in the cited EPA table Not stated separately in the cited EPA table

The reallocation figures are EPA’s category-specific table values; they should not be added together or treated as interchangeable measures because advanced biofuel and biomass-based diesel are categories within the broader renewable-fuel program. EPA’s final 2026–2027 Renewable Fuel Standards

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What happened with 2025 exemption petitions

On August 31, 2026, EPA announced decisions on 34 petitions for compliance year 2025: 18 full exemptions, 11 partial exemptions, 3 denials, and 2 ineligible petitions. In a separate release, EPA said exemptions totaling 1.76 billion RINs were issued for 29 small refineries. The petition counts and RIN total describe different measures and should not be read as equivalent counts of refineries or gallons. EPA’s August 31, 2026 petition decisions · EPA’s announcement on 2025 exemptions and related actions

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EPA said it planned to propose reallocating 100% of the difference between projected and actual exempted 2025 volumes into the 2026 and 2027 obligations before the end of October 2026. As of October 8, 2026, that 100% approach had not been finalized. It is separate from the final 70% reallocation rule covering exempted volumes for 2023–2025.

How to read the policy timeline

  • August 2025: EPA decided 175 petitions covering compliance years 2016–2024, with full and partial exemptions, denials, and ineligible petitions.
  • March 2026: EPA finalized 70% reallocation of exempted 2023–2025 volumes into the 2026 and 2027 standards.
  • August 2026: EPA decided 2025 petitions and announced an intention to propose 100% reallocation of the difference between projected and actual exempted 2025 volumes; that proposal was not final as of October 8, 2026.

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