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EPA UPDATES SMALL REFINERY EXEMPTIONS, ETHANOL ASSOCIATIONS UNHAPPY
Aug. 25, 2025
Source: National Sorghum Producers
Lubbock, TX -- The Environmental Protection Agency last week granted full or partial exemptions to 38 small refineries under the Renewable Fuel Standard, covering compliance years 2016-2024. The decision resolves more than 175 pending petitions and will award over 1.4 billion RINs from 2023-2024 to refiners for use toward the delayed 2024 compliance deadline. EPA also pledged to issue a supplemental rule to reallocate exempted gallons, though that process will delay finalization of 2026-2027 RFS volumes.
The move drew sharp criticism from biofuel and farm groups, who warned exemptions risk undermining demand for feedstocks. Growth Energy and Clean Fuels Alliance urged EPA to reallocate every exempted gallon, while the Renewable Fuels Association said the approach should be "minimally disruptive" if reallocation is carried out.
Market reaction was mixed, with refinery stocks rising on reduced compliance costs while RIN markets remained volatile. The outcome of EPA's forthcoming reallocation proposal will be closely watched as farmers head into harvest and as Washington signals its longer-term commitment to renewable fuels.
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