ASA Statement on Small Refinery Exemptions & RIN Reallocation

The American Soybean Association today responded to the administration's actions on 2025 small refinery exemption (SRE) petitions, which remove approximately 1.8 billion Renewable Identification Numbers (RINs) from Renewable Fuel Standard compliance for small refiners but propose to reallocate 100% of those RINs to larger refiners in the current 2026-2027 period, thereby assuring no loss in biofuel demand. Without 100% reallocation in the current period covered by EPA's Set 2 Rule, ASA had estimated that biomass-based diesel demand would drop by 500 million gallons and soybean farmers would suffer almost a $1 billion loss in revenue.

ASA appreciates the intervention of President Trump, the U.S. Department of Agriculture, and members of Congress, who highlighted the threat of SRE actions to biofuel feedstock producers and identified solutions to protect domestic soybean markets ahead of harvest. ASA also thanks the EPA for outlining the timeline to move forward with supplemental rulemaking before the end of October to hold soybean farmers and biofuel demand harmless by ensuring additional impacted volumes are 100% reallocated back into the historic renewable volume obligations finalized by the Trump administration in April.

"Soybean farmers greatly appreciate President Trump, Senator Grassley along with other biofuel champions in Congress, and USDA officials for sounding the alarm and working around the clock to ensure that soybean farmers and producers of homegrown biofuels are not negatively impacted by today's SRE announcement," said Dave Walton, ASA vice president and Iowa soybean farmer. "We appreciate the administration's commitment to reallocating 100% of these additional exemptions and their intention to enter into supplemental rulemaking soon, but timing is critical. Any delay in reallocation risks undermining the domestic market demand that soybean farmers urgently need as we enter harvest season. EPA must move quickly to fully reallocate these RINs and ensure soybean farmers are held harmless."

ASA also urges EPA to include 100% reallocation of updated expected SRE levels for 2026 and 2027. EPA proactively accounted for expected exemptions in setting those volumes, but SRE levels are now expected to be higher if new assessment methodology does not change. Addressing updated 2025-2027 SRE levels together would protect the integrity of the RFS and avoid the need for annual supplemental rulemakings.