The EPA has proposed new rules that could reallocate biofuel blending volumes previously waived for small refineries-a major move for farmers, biofuel producers, and refiners.
In a significant policy shift, the Environmental Protection Agency (EPA) has unveiled a long-awaited proposal to reallocate biofuel blending volumes previously exempted under the Small Refinery Exemption (SRE) program. The decision marks a new chapter in the battle over the Renewable Fuel Standard (RFS) and has sparked sharp reactions from both the agriculture and petroleum sectors.
>> In Other News: Delta Partners With Maeve Aerospace to Advance Hybrid Regional Aircraft
The EPA is considering two main options for reallocation:
The agency will also accept public input on alternative reallocation percentages during the upcoming comment period.
Clean Fuels Alliance America, representing biodiesel and renewable diesel producers, welcomed the move. Paul Winters, Director of Public Affairs at Clean Fuels Alliance America, said the proposal would help ensure that biofuel volume mandates are truly met, protecting demand and market stability.
The biofuel industry has long argued that SREs undermine the RFS, by reducing overall blending volumes, thereby cutting into production incentives and revenue for farmers and biofuel producers. The EPA's new proposal seeks to correct that by redistributing the waived gallons across remaining obligated parties.
The American Petroleum Institute (API) strongly opposes the reallocation. Will Hupman, Vice President of Downstream Policy at API, warned the move could raise consumer fuel prices and harm smaller refiners unfairly.
The EPA's reallocation plan is also politically charged. The issue of SREs created deep divisions during the Trump administration, as oil and ag groups battled over waivers at high-stakes White House meetings. Trump, who has historically courted both industries, may face renewed scrutiny on the issue in the lead-up to 2026.
Meanwhile, the EPA also plans to update its estimates for waived gallons for 2026 and 2027, aiming to increase predictability and transparency in the RFS program.
The EPA will hold a virtual public hearing on October 1, opening the door for stakeholders across the energy and agriculture sectors to weigh in before the rule is finalized.
As the public comment period begins, this rule could significantly influence input costs, demand forecasts, and compliance strategies across the agriculture and fuel industries.
The Environmental Protection Agency (EPA) is a U.S. federal agency responsible for protecting human health and the environment. Established in 1970, the EPA develops and enforces regulations, conducts research, and works with state and local governments to ensure environmental protection and sustainable practices across the country.
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.
Inside This Issue 🌽 Nebraska's 3-Plant Ethanol CCS Gamble Pays Off Big 🧊 New Evaporative Crystallizer Design Accelerates Direct-Air Carbon Capture ✈️ From SAF to Solar: DHL’s Bold Steps Toward Net...
Happy New Year from Decarbonfuse! As we wrap up 2025, we want to thank you for being part of the growing Decarbonfuse community. Your engagement and feedback have helped make this platform a trust...
Inside This Issue 💸 $213 Per Tonne: Inside the Latest Multi-Pathway CDR Deal 🏛️ Clean Energy Technologies Affiliate Vermont Renewable Gas Advances Regulatory Review 💧 Fusion Fuel’s BrightHy Soluti...
Plug To Participate In Goldman Sachs Energy, CleanTech & Utilities Conference
SLINGERLANDS, N.Y., Jan. 06, 2026 (GLOBE NEWSWIRE) -- Plug Power, Inc. (NASDAQ: PLUG), a global leader in comprehensive hydrogen solutions for the hydrogen economy, announced its participation in t...
Venture For ClimateTech Accelerator Launches Applications For Cohort 6
Each Selected Startup Receives Up to $50,000 and High-Touch Support ROCHESTER, N.Y., Jan. 06, 2026 (GLOBE NEWSWIRE) -- Venture For ClimateTech (V4C), a global accelerator supporting early-stage cl...
MIAMI, Jan. 06, 2026 (GLOBE NEWSWIRE) -- UMeWorld Limited (OTC: UMEWF), a Delaware-incorporated company advancing enzymatic biorefining solutions for renewable fuels and functional nutrition, today...
ATHENS, Greece, Jan. 06, 2026 (GLOBE NEWSWIRE) -- Capital Clean Energy Carriers Corp. (the “Company”, “CCEC,” “we” or “us”) (NASDAQ: CCEC), an international owner of ocean-going vessels, today anno...
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.