EPA Debates Where to Send Refinery Exemptions—and Which Year Gets Them
Published Date: 10/16/2026
Proposed Rule
Summary
The EPA is updating how it handles small refinery exemptions (SREs) for 2025 under the Renewable Fuel Standard. They’re deciding whether to spread the extra exemptions between 2026 and 2027 or give them all to 2027. This change might also push back the 2026 compliance deadline, affecting refiners and renewable fuel producers with potential timing and cost impacts.
Analyzed Economic Effects
4 provisions identified: 2 benefits, 2 costs, 0 mixed.
Equal split of extra 2025 SRE RINs
If you are an obligated party (e.g., a refiner or importer), EPA is proposing an option to reallocate the additional 770 million RINs from 2025 SREs equally between the 2026 and 2027 SRE reallocation volumes. Under this "equal reallocation" approach, the 2026 and 2027 SRE reallocation volumes would each be increased to about 1.4 billion RINs (up from 0.99 billion for 2026 and 1.04 billion for 2027 in the Set 2 Rule).
Extra 2025 carryover RINs may reduce renewable fuel demand
If you produce renewable fuel or trade RINs, EPA says the 770 million additional 2025 exempted RVO RINs could be carried over and used for 2026 and 2027 compliance, which "could reduce demand for renewable fuel and RINs in those years" and "has the potential to depress RIN prices and decrease demand for renewable fuel in future years," especially in 2027.
All extra 2025 RINs shifted to 2027
If you are an obligated party, EPA is proposing an alternative to put all of the additional 770 million 2025 RINs into the 2027 SRE reallocation volume instead of splitting them. Under this "2027 reallocation" approach, the 2026 SRE reallocation volume would remain 0.99 billion RINs and the 2027 SRE reallocation volume would increase to about 1.81 billion RINs (up from 1.04 billion).
Automatic extension of 2026 reporting deadline
If EPA finalizes the proposed revision to the 2026 RFS standards, the current 2026 compliance reporting deadline of March 31, 2027 will be extended to the next quarterly reporting deadline after the revised standards become effective. If EPA withdraws the proposal, the deadline will be the next quarterly reporting deadline 60 days after withdrawal publication; if EPA neither finalizes nor withdraws within 12 months of this proposal, the deadline will be 12 months after this proposed rule's publication.
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Key Dates
Department and Agencies
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