WASHINGTON, D.C.—Growth Energy, the nation’s largest biofuel trade association, called on the U.S. Environmental Protection Agency (EPA) to quickly finalize its proposed reallocation rule that accounts for lost gallons from recent small refinery exemptions (SREs) under the Renewable Fuel Standard (RFS).
At a hearing today, Growth Energy General Counsel Joe Kakesh expressed the organization’s support for EPA’s proposal, noting that reallocation should be a normal part of EPA’s administration of the RFS. “Just as it has the authority—and obligation—to incorporate projected SREs into renewable volume obligations (RVOs), EPA also has the authority and obligation to reallocate excess 2025 SRE RINs to other RVOs, here for 2026 and 2027,” he said in testimony. “In doing so, EPA meets Congress’ statutory mandate that EPA ‘ensure’ that renewable volume obligations are met. In fact, EPA should fully account for excess SRE RINs every year, not just for 2025.”
“EPA is right to account for every lost SRE gallon,” said Growth Energy CEO Emily Skor. “Especially in a time of record profits, refiners shouldn’t be able to simply cast off their RVO blending obligations onto the American biofuels industry,” she added, pointing to recent earnings reports from oil refineries that received SREs in August.
The Wall Street Journal recently reported that refiners are “printing money.”
“Despite recent announcements of near-record profits, refiners are asking for even more handouts, urging EPA to walk away from President Trump’s commitment to fully account for lost biofuel gallons and make producers and farmers whole,” added Skor. “At a time when farms are facing a sixth consecutive year of negative returns, and consumers are pleading for relief at the pump, we shouldn’t be looking for new ways to line refiners’ pockets. EPA must adhere to President Trump’s vision by limiting the impact of SREs and driving down costs by increasing the use of homegrown biofuels.”
Read Kakesh’s full testimony from the reallocation hearing here.