More to come on EPA’s approach to SREs

Last Friday, the U.S. Environmental Protection Agency (EPA) announced decisions on 175 Small Refinery Exemption petitions under the Renewable Fuel Standard for 2016 to 2024. There was a backlog of SRE applications due to inaction during the Biden administration. The EPA granted full exemptions to 63 petitions, partial exemptions to 77 petitions, denied 28 petitions, and deemed seven ineligible. Additionally, the agency said it will reallocate exempted volumes for the 2023 and later compliance years. A proposed rule on reallocation is expected later this year. EPA does not plan to reallocate exempted volumes for any SREs from 2016 to 2022 considering the limitation on their potential use. (Under the RFS program, RINs have a two-year window for use, covering the compliance year in which they were generated and the following compliance year.)

In a statement, Minnesota Corn Growers Association President Jim Kanten said EPA’s approach deals with the backlog but creates uncertainty for the 2023 and 2024 compliance years. MCGA supports full reallocation 2023 and 2024 blending volumes.

“Anything but a full reallocation of exempted volumes for 2023 and 2024 would undermine the Renewable Fuel Standard program, which for 20 years has been a remarkable success for U.S. farmers and consumers,” Kanten said. “Since the RFS implementation, the program has cut fuel costs and emissions while creating hundreds of thousands of jobs across rural America and strengthening the farm economy. The EPA under the Trump administration has signaled a strong commitment to the RFS through its proposing of robust RVO targets for 2026 and 2027. But to maintain the integrity of those targets, reallocation of the exempted volumes must be completed. We look forward to working with EPA and President Trump in in the coming months to ensure the vitality of the RFS while creating additional opportunities for U.S. farmers.”