EPA proposes 100% reallocation of the 2025 small refinery biofuel exemption difference

The EPA has proposed reallocating 100% of the small refinery biofuel exemptions for 2025 that exceed estimates to the blending obligations for 2026 and 2027. The proposal aims to offset the loss of biofuel demand caused by the exemptions and shift the corresponding compliance burden to refineries that did not receive exemptions. Biofuel industry groups support the plan, while refining industry groups warn it could raise fuel costs for U.S. consumers.