EPA proposes full reallocation of 770 million exempted biofuel credits

The US Environmental Protection Agency (EPA) has proposed a plan to reallocate 100% of the 770 million exempted renewable identification numbers (RINs) from recent small-refinery exemptions into future renewable fuel obligations (RVOs).

Following an August decision to grant 29 small-refinery exemptions for the 2025 compliance year, the agency is seeking feedback on whether to split the volume evenly between the 2026 and 2027 RVOs or assign the entire amount to 2027. The proposal aims to maintain a durable market for farmers by ensuring that exempted volumes are re-injected into forward obligations rather than being lost.

While biofuels groups have praised the move for supporting agricultural demand, some refiners have warned that the reallocation could lead to increased fuel costs. The proposal comes as the agency manages record blending mandates for 2026 and 2027. Public comments on the proposal are being accepted until December 4, 2026.