Clean Fuels Supports EPA’s Proposal to Reallocate SREs in 2026 and 2027

A final rule before year's end is needed to support U.S. farmers and the industry's rural investments

WASHINGTON, DC - Today, Clean Fuels VP of Federal Affairs Kurt Kovarik, Regulatory Affairs Director Kate Shenk, and Governing Board Chair Kent Engelbrecht each testified at EPA's virtual public hearing on the Proposed Reallocation of Additional 2025 Small Refinery Exemptions.

In April, EPA's final rule on 2026-2027 Renewable Fuel Standards included an estimate that 2025 small refinery exemptions would total 990 million RINs. In August, EPA granted 2025 exemptions totaling 1.76 billion RINs. In October, EPA proposed to add supplemental volumes to the 2026-2027 Renewable Fuel Standards to reallocate 100% of the difference between its April estimate and August final action. Clean Fuels supports EPA's proposal to reallocate 100% of the difference and split the supplemental volume between 2026 and 2027 obligations.

Kurt Kovarik stated, "We strongly support EPA's proposal to reallocate the gallons equally to 2026 and 2027 volume obligations. We ask the agency to finalize this supplemental rule as soon as possible - certainly by the end of the year - to ensure that the robust volumes for 2026 and 2027 are not eroded by small refinery exemptions, past or future."

"Any delays in finalizing this rule will have real market impacts similar to what we saw when the SREs were granted in August," Kate Shenk added. "Timely action before the end of the year will be crucial to address diesel supplies and prices. Biodiesel and renewable diesel producers will respond to this rule and the stability of the RFS program the same way we ramped up production when the Set 2 Rule was finalized in April."

Kovarik concluded, "The clean fuels industry is delivering on the goals for the RFS - making investments in rural America, creating new jobs, and massively increasing America's energy supply. U.S. companies throughout the biodiesel, renewable diesel, and SAF supply chain have announced new investments in capacity since earlier this year, based on the robust RFS volumes."

Contact: Paul Winters, [email protected]

ABOUT CLEAN FUELS ALLIANCE AMERICA

Made from an increasingly diverse mix of resources such as recycled cooking oil, soybean oil, and animal fats, the clean fuels industry is a proven, integral part of America's clean energy future. Clean Fuels Alliance America is the U.S. trade association representing the entire biodiesel, renewable diesel and sustainable aviation fuel supply chain, including producers, feedstock suppliers and fuel distributors.

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