The Environmental Protection Agency (EPA) issued a Supplemental Notice of Proposed Rulemaking (SNPRM) to revise the proposed Renewable Fuel Standard (RFS) renewable volume obligations (RVOs) for 2026 and 2027 to account for small refinery exemptions in blending requirements.
The SNPRM considers how SREs for compliance years 2023 – 2025 will be accounted for when establishing the RVOs. It also specifies how the agency plans to project SREs for 2026 and 2027 to establish RFS standards for those years.
EPA is requesting public comment on whether 100 percent or 50 percent of small refinery exemptions should be reallocated for 2023-2025.
EPA reviewed 175 individual small refinery exemption petitions from 38 refineries seeking an exemption from their RFS obligations for the 2016–2024 compliance years. In August 2025 EPA granted full exemptions to 63 petitions and partial exemptions to 77 petitions. Twenty-eight petitions were denied, and seven were deemed ineligible.
The agency plans to host a virtual public hearing on October 1, 2025, for the SNPRM.
The public comment period closes Oct. 31, 2025.
EPA on June 13, 2025, issued its proposed RVOs for 2026 and 2027 under the RFS. EPA has proposed to require 24.02 billion Renewable Identification Numbers (RINs) of renewable fuel in 2026, and 24.46 billion RINs in 2027. EPA is also proposing to partially waive the 2025 mandate for cellulosic biofuel.
NATSO testified before EPA July 8 that fuel retailers view the proposed 2026 and 2027 renewable volume obligations as a positive signal for biofuel investments but cautioned against creating winners and losers, which could lead to unintended market consequences.
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