EPA Grants 29 Small-Refinery Exemptions, 1.76B RINs for 2025

TL;DR: The Environmental Protection Agency (EPA) approved 29 small-refinery exemption (SRE) petitions for the 2025 compliance year, totaling 1.76 billion Renewable Identification Numbers (RINs), about 770 million above its earlier forecast of roughly 990 million. EPA pledged to propose reallocating 100% of the exempted volume into the 2026 and 2027 Renewable Volume Obligations (RVOs) by the end of October.

Key takeaway

EPA exempted 29 small refineries totaling 1.76 billion RINs for 2025 but promised to reallocate 100% of that volume into the 2026 and 2027 biofuel mandates.

What happened

EPA approved 29 SRE petitions for the 2025 compliance year on September 1, 2026. Of those, 18 refineries received full exemptions and 11 received 50% exemptions. Three petitions were denied and two were ruled ineligible.

An SRE is a waiver that releases a small refinery from its obligation to blend renewable fuel under the Renewable Fuel Standard. A RIN is the tradable credit that tracks each gallon of renewable fuel blended into the fuel supply.

The 29 approved exemptions total 1.76 billion RINs, roughly 770 million above EPA's earlier projection of about 990 million. To offset the waived volume, EPA committed to proposing a reallocation of 100% of the exempted volume into the 2026 and 2027 RVOs by the end of October.

On the same date, USDA Secretary Rollins cited small-refinery-waiver volume reallocation at the Farm Progress Show, describing it as preserving record RVOs. Rollins used the appearance to promote a USDA data modernization plan and E15 summer waivers, and did not address the pending Farm Bill 2.0 reauthorization. You can track where that bill stands on our timeline and status page.

What it means

The reallocation pledge is the pivotal detail for corn and soybean growers. Without reallocation, exempted volume permanently reduces biofuel demand. With 100% reallocation into 2026 and 2027, the demand is shifted forward rather than erased.

Industry reaction was split between concern over the exemptions and cautious relief over the reallocation:

• Renewable Fuels Association (RFA): Geoff Cooper called most of the exemptions "completely unjustified" but said he was "somewhat encouraged" by the reallocation commitment.
• Growth Energy: Emily Skor questioned how record-earning refiners met the hardship threshold required for an exemption.
• National Corn Growers Association (NCGA): Jed Bower flagged the risk to corn-based biofuel demand.
• American Farm Bureau Federation (AFBF): Zippy Duvall flagged the risk to soybean biofuel demand.

The soybean exposure is concrete. This action realizes an August 26 warning of a roughly $1 billion soybean-demand hit if exempted volume were not reallocated. The reallocation pledge is intended to blunt that hit, but growers will not know the final figures until EPA publishes the proposed rule. For how biofuel policy interacts with the broader reauthorization, see what's new vs. 2018.

What's next

EPA is expected to propose the reallocation rule by the end of October 2026, as of this report. The proposal would specify how much of the 1.76 billion RINs is added to the 2026 RVO versus the 2027 RVO.

A proposed rule typically opens a public comment period before finalization, giving biofuel groups, refiners, and farm organizations a chance to weigh in. Corn and soybean groups are likely to press for the full volume to be reallocated as promised, while refiners are expected to contest the added obligation.

The Renewable Fuel Standard sits outside H.R. 7567, but biofuel demand shapes commodity prices that the Farm Bill's safety-net programs are designed to backstop. Readers can review those program details in the full bill summary and share views with lawmakers through our contact Congress tool.

Frequently asked questions

What is a small-refinery exemption?

A small-refinery exemption, or SRE, is a waiver granted by the Environmental Protection Agency that releases a small refinery from its obligation to blend renewable fuel under the Renewable Fuel Standard. To qualify, a refinery must show disproportionate economic hardship. EPA approved 29 such petitions for the 2025 compliance year, granting full exemptions to 18 refineries and 50% exemptions to 11.

How many RINs did the 2025 exemptions total?

The 29 approved small-refinery exemptions total 1.76 billion Renewable Identification Numbers, or RINs, for the 2025 compliance year. That figure is roughly 770 million above EPA's earlier projection of about 990 million RINs. A RIN is the tradable credit that tracks each gallon of renewable fuel blended into the U.S. fuel supply under the Renewable Fuel Standard.

Will the exempted biofuel volume be reallocated?

Yes. EPA committed to proposing a reallocation of 100% of the exempted volume into the 2026 and 2027 Renewable Volume Obligations, or RVOs. EPA said it expects to make that proposal by the end of October 2026. Reallocation shifts the waived biofuel demand forward into future years rather than eliminating it, which is intended to protect corn and soybean demand.

How does this affect corn and soybean farmers?

The exemptions reduce near-term biofuel demand, but EPA's pledge to reallocate 100% of the volume is meant to offset that loss. This action realizes an earlier August 26 warning of a roughly $1 billion soybean-demand hit if the volume were not reallocated. Farm groups including NCGA and AFBF flagged the corn and soybean demand risk while cautiously welcoming the reallocation commitment.

Is the Renewable Fuel Standard part of the Farm Bill?

No. The Renewable Fuel Standard is administered by the Environmental Protection Agency and sits outside H.R. 7567, the Farm, Food, and National Security Act of 2026. However, biofuel demand affects corn and soybean prices, which in turn interact with the Farm Bill's commodity and crop-insurance safety-net programs. That is why farm groups track EPA biofuel decisions closely alongside the reauthorization.

Sources

• Hoosier Ag Today / Reuters , EPA grants 29 small-refinery exemptions totaling 1.76B RINs, pledges 100% reallocation, dated 2026-09-01.
• AgWired , Rollins touts RFS reallocation and E15 waivers at Farm Progress Show, dated 2026-09-01.