RFA backs full reallocation of renewable fuel volumes lost to refinery exemptions
The Renewable Fuels Association (RFA) has expressed strong support for a proposal from the U.S. Environmental Protection Agency (EPA) aimed at restoring renewable fuel volumes lost through recent small refinery exemptions.
The proposal would reallocate renewable fuel obligations that were waived after exemptions were granted to certain refineries. According to RFA, the move would help preserve the goals of the Renewable Fuel Standard (RFS) and maintain demand for renewable fuels such as ethanol.
RFA leaders say the Renewable Fuel Standard was created to increase the use of renewable fuels in the United States while supporting farmers, biofuel producers, retailers, and rural communities. The organization believes that exemptions should only be used in limited situations where refineries face genuine economic hardship.
The group argues that the current exemption process has led to a significant reduction in renewable fuel requirements, creating uncertainty for businesses that have invested heavily in biofuel production and infrastructure. RFA says these exemptions can weaken confidence in the program and reduce opportunities for growth in the renewable fuels industry.
“Congress intended small refinery exemptions to provide temporary relief to refiners facing genuine disproportionate economic hardship—not to become a permanent entitlement. Yet, EPA continues granting exemptions under a flawed scoring matrix, despite its own findings that refiners generally recover RIN compliance costs through wholesale fuel prices,” said RFA President and CEO Geoff Cooper.
He added, “These unwarranted exemptions undermine the integrity of the RFS, reduce renewable fuel demand, and discourage investment by renewable fuel producers, farmers, and retailers who have invested billions to support this program.”
The EPA's proposal would fully reallocate renewable fuel volumes that were removed through additional refinery exemptions. RFA supports this approach because it would ensure that the overall renewable fuel targets established under the Renewable Fuel Standard remain intact.
Industry leaders say full reallocation is important because exempted compliance credits can otherwise be carried forward and used to satisfy future obligations. This can reduce demand for newly produced renewable fuels, limiting market opportunities for ethanol producers and the agricultural sector.
RFA also believes the proposal supports recent renewable fuel targets and helps maintain the integrity of the Renewable Fuel Standard. The organization says preserving these targets is critical for farmers who supply feedstocks used in renewable fuel production, including corn growers across the country.
During an EPA hearing, RFA representatives highlighted the economic benefits of renewable fuels. They noted that renewable fuels help expand fuel choices, support domestic energy production, and contribute to rural economic development.
The association also pointed to current conditions in fuel markets, stating that refinery companies continue to operate profitably while many consumers remain concerned about fuel costs. According to RFA, increasing the use of renewable fuels can help provide a more affordable and reliable energy option for drivers.
Supporters of the policy say full reallocation ensures that renewable fuel demand is not reduced by exemption decisions. They believe the approach helps maintain a stable marketplace for renewable fuel producers and encourages continued investment in the sector.
RFA continues to advocate for reforms to the refinery exemption program while supporting EPA's effort to restore lost renewable fuel volumes. The organization says stronger and more consistent implementation of the Renewable Fuel Standard will provide benefits for agriculture, renewable fuel producers, and consumers.
As EPA reviews public feedback on the proposal, agricultural stakeholders and renewable fuel advocates will be watching closely. The outcome could influence future renewable fuel demand, investment decisions, and the role of biofuels in the nation's energy strategy.
Photo Credit: Renewable Fuels Association