EPA proposes reallocating 50% or 100% of SRE volumes

In Washington, the U.S. Environmental Protection Agency (EPA) issued a supplemental notice of proposed rulemaking (SNPRM) that revises the proposed Renewable Fuel Standard (RFS) “Set 2” renewable volume requirements (RVOs) for 2026 and 2027 to account for the small refinery exemption (SRE) decisions issued on August 22, 2025. The Trump Administration reaffirms its renewed commitment to honor the program’s purpose to support biofuels as an essential part of a thriving liquid fuels market.

The SNPRM seeks to balance the goals of the RFS program in supporting the production and use of renewable fuels while taking into account economic impacts, following the law, and ensuring opportunity for public comment.

Specifically, the SNPRM considers how SREs for compliance years 2023 – 2025 will be accounted for when establishing the RVOs in the “Set 2” final rule. EPA is co-proposing two approaches:

1. Additional volumes accounting for 100 percent of the 2023 – 2025 exempted RVOs.

2. Additional volumes accounting for 50 percent of the 2023 – 2025 exempted RVOs.  

EPA is also taking comments on SRE reallocation volumes equal to other amounts.