Washington: The US Environmental Protection Agency (EPA) has announced its decisions on 2025 Small Refinery Exemptions (SREs) and plans to reallocate renewable fuel obligations associated with exempted volumes, a move aimed at protecting demand for ethanol and biodiesel produced by US farmers and biofuel companies, according to press release.
US Representative Zach Nunn of Iowa welcomed the announcement, saying the reallocation would prevent biofuel demand lost through refinery exemptions from being permanently erased.
“Iowa’s farmers and biofuel producers built the most productive renewable fuel economy in the world,” Nunn said, adding that exempted biofuel volumes should be reallocated rather than removed from the market.
Under the Renewable Fuel Standard (RFS), refiners are generally required to meet renewable fuel obligations through Renewable Identification Numbers (RINs). Small refinery exemptions allow eligible refineries to receive relief from these obligations. Critics have argued that exemptions can reduce demand for ethanol and biodiesel when the exempted volumes are not restored.
Nunn said he had pushed the EPA, along with other members of the Iowa delegation, to ensure that any volumes covered by the exemptions would be restored. He said the proposed reallocation would help protect demand for Iowa-grown corn-based ethanol and soybean-based biodiesel.
However, he stressed that the process is not complete until the EPA finalises the proposed rule and restores the affected renewable fuel volumes.
“If EPA grants refinery exemptions, those gallons need to be fully restored,” Nunn said, while also calling on Congress to advance permanent year-round E15 sales.
Farm and biofuel groups welcome move
The EPA’s proposed approach received support from agricultural and biofuel organisations.
Kurt Kovarik, vice president of federal affairs at Clean Fuels Alliance, said the action would help prevent another round of unaccounted-for refinery exemptions and the resulting loss of biofuel demand.
Corey McCray, vice president of government relations at the National Oilseed Processors Association, credited Nunn and other lawmakers for their efforts to maintain a strong RFS for farmers and soybean processors.
The Iowa Soybean Association also welcomed the proposal, with its Chief Officer of Advocacy and Demand Matt Herman urging the EPA to reallocate 100% of the lost volume.
John Deere also praised Nunn’s efforts, saying the proposed reallocation of RIN obligations could provide greater certainty for renewable fuel demand.
The EPA’s final decision on the supplemental rule will determine whether the exempted volumes are fully restored, a development closely watched by US ethanol producers, biodiesel manufacturers, farmers and agricultural processors.
