American Soybean Association opposes expanded small refinery exemptions under RFS
The American Soybean Association (ASA) is raising concerns that small refinery exemptions under the 2025 Renewable Fuel Standard (RFS) could be significantly higher than previously projected, potentially weakening demand for U.S. biofuels and soybean oil.
Recent reports suggest exemptions for the 2025 compliance year could exceed 1.8 billion Renewable Identification Number (RIN) credits under a revised methodology being considered. That amount would be nearly twice the level the Environmental Protection Agency (EPA) anticipated when it finalized the 2026-2027 Renewable Volume Obligation Rule.
Earlier this year, ASA supported the Administration and EPA after the final biofuel blending rule established historically higher renewable fuel volumes.
The organization said those increases could strengthen domestic demand for biofuels and U.S. soybeans while encouraging investment throughout the industry.
ASA now warns that approving exemptions substantially above the EPA’s previous assumptions could undermine those gains.
According to the organization, a larger volume of exemptions could reduce biomass-based diesel demand by approximately 500 million gallons and result in about $1 billion in lost revenue for U.S. soybean farmers.
“At a time when soybean farmers are already struggling to support our farms, we cannot afford for the rug to be pulled out from under one of our most important sources of domestic demand. The Trump Administration has been tirelessly supporting policies that expand markets for biofuels made from U.S. soybeans, and we cannot reverse course just as the biofuel industry is beginning to realize the benefits," said ASA Vice President Dave Walton, a soybean farmer from Iowa.
"Domestic biofuel policy succeeds when it supports American farmers producing American energy, not when it gives oil refiners another break at a time when they are experiencing record profits. We hope the President and White House maintain their commitment to U.S. farmers and reject proposed actions that destroy these newly expanded markets in exchange for a giveaway to oil refiners.”
ASA emphasized that biomass-based diesel remains an important domestic market for soybean oil, supporting farm income, rural employment, and economic activity.
The group is urging the administration to reject broader exemption calculations and maintain waiver levels consistent with the EPA’s historically supported estimates.
Photo Credit: american-soybean-association