EPA proposes full reallocation of 2025 biofuel waivers
EPA Administrator Lee Zeldin on October 13, 2026, announced in Peosta, Iowa, a proposal to reallocate 100 percent of renewable-fuel volumes lost when 2025 small-refinery exemptions exceeded projections. EPA's August 31 decisions exempted 1.76 billion RINs for 29 small refineries, a 770 million RIN gap above the forecast of about 990 million. Two approaches are proposed: split the volume equally between 2026 and 2027, or place all of it in 2027. Brooke Rollins said the biofuel industry supports over 100,000 jobs and generates over $100 billion in economic activity. Chuck Grassley said it directly employs 31,000 Iowans. Brian Jennings said, "The integrity of the RFS depends on ensuring the volumes established under the program translate into real-world renewable fuel demand," and that farmers need certainty requirements will not be eroded by exemptions. Matt Frostic said producers will be kept whole. Kurt Kovarik urged finalizing supplemental volumes in both 2026 and 2027 for a clear and immediate market signal. Dave Walton urged EPA to finish the rule quickly for soybean farmers in a tough farm economy. The Renewable Fuels Association said 18 refiners received full exemptions and 11 partial ones, the second-highest annual SRE volume EPA has granted. Public comment runs through December 4, 2026. The proposal is not yet final.