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1Clear out junk files and repair common Windows errors2Scan for outdated or missing drivers - takes under a minute3Repair Windows errors before they cause bigger problemsThe “half or less” figure described a proposal under review in September 2025—not EPA’s final policy. EPA’s March 2026 rule set a 70% reallocation of small-refinery exemptions granted for compliance years 2023–2025. Separately, as of October 8, 2026, EPA said it planned to propose reallocating the full difference between projected and actual 2025 exemptions into 2026–2027 obligations; that proposal had not yet been finalized.
What did “half or less” mean?
On September 10, 2025, Reuters reported that the White House was reviewing an EPA proposal that would require large refineries to cover around half or less of the biofuel blending requirements waived for small refineries. The report relied on unnamed sources; it described a proposal being reviewed, not a final rule. Reuters reporting republished by Successful Farming said the proposal’s calculation involved about 1.1 billion gallons of renewable fuel and could leave roughly 550 million gallons of demand unmet.
That 550-million-gallon figure was a conditional estimate, not a measured change in fuel demand. Reuters said the potential shortfall could increase the supply of Renewable Identification Numbers (RINs) and put downward pressure on RIN prices; the report did not establish that those market effects occurred.
How the Renewable Fuel Standard works
The federal Renewable Fuel Standard (RFS) requires covered refiners to blend renewable fuel into the fuel pool or obtain RINs generated by renewable-fuel production. Eligible small refineries can petition for exemptions based on hardship. When EPA waives obligations, the policy question is whether and how much of those waived requirements should be reassigned to other obligated refiners.
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The dispute involves competing interests. Biofuel producers and farm-state lawmakers favored restoring all waived obligations, while the oil industry opposed taking on additional requirements. The September 2025 report described the proposal as a possible compromise, but its “half or less” formulation should not be treated as the eventual rule.
How the 2025 proposal compares with EPA’s later actions
| Action | Reallocation | Compliance years | Status and meaning |
|---|---|---|---|
| Proposal reported September 10, 2025 | Around half or less, according to unnamed sources; Reuters cited about 1.1 billion gallons in waived renewable fuel and a possible 550-million-gallon demand gap. | The report concerned small-refinery waivers under review; the cited figures were not a final rule’s compliance-year table. | Under White House review, not final. The demand and RIN-price effects were potential outcomes, not observed results. Source: Reuters via Successful Farming, September 10, 2025. |
| EPA final rule announced March 27, 2026 | 70% reallocation of small-refinery exemptions granted for 2023–2025. | 2023–2025 exemptions; the rule also set volume and percentage standards for 2026 and 2027. | Final EPA action, superseding the earlier reported proposal for those years. EPA expresses the final table in billion RINs; one RIN is equivalent to one ethanol-equivalent gallon. Source: EPA. |
| EPA announcement on August 31, 2026 | EPA said it would propose reallocating 100% of the difference between projected and actual 2025 exempted volumes. | The proposed adjustment would feed into 2026–2027 obligations. | EPA had decided 34 petitions, exempting 1.76 billion RINs for 29 refineries. The full-difference reallocation was a planned proposal, not yet finalized as of October 8, 2026. Source: EPA, August 31, 2026. |
What EPA said about 2025 exemptions
On August 31, 2026, EPA announced decisions on 34 petitions for the 2025 compliance year. The agency exempted 1.76 billion RINs for 29 refineries. EPA also said it would propose, before the end of October 2026, reallocating 100% of the difference between projected and actual 2025 exempted volumes into the 2026–2027 obligations. As of October 8, that was a stated plan for a future proposal—not a completed rule.
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The distinction matters: the final 70% reallocation rule covers exemptions granted for 2023–2025, while EPA’s later announcement concerned an additional adjustment tied to the difference between projected and actual 2025 exemptions. The latter should not be described as already finalized.
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