EPA Weighs Refinery Waivers Amid Farm Backlash Over Renewable Fuel Exemptions

The US Environmental Protection Agency (EPA) is considering an expansion of Small Refinery Exemptions (SREs) that could cover up to 1.8 billion renewable identification numbers (RINs), significantly higher than the initial 1 billion RINs contemplated.

The move has sparked opposition from agricultural and biofuel groups, who argue that reducing refinery obligations would weaken demand for ethanol and other renewable fuels, putting pressure on corn and soybean markets.

Refiners are seeking relief from renewable-fuel compliance costs, while farmers and biofuel producers are concerned about the impact on their industries. The Trump administration is considering ways to offset the impact on agriculture, including potentially increasing 2027 renewable fuel volumes by around 500 million gallons or more.