EPA Grants Biofuel Exemptions

The U.S. Environmental Protection Agency (EPA) has granted 1.76 billion Renewable Identification Number (RIN) exemptions to small refiners for the 2025 compliance year, raising concerns among farmers and biofuel producers about the potential impact on demand for renewable fuel.

RINs are compliance credits and the “currency” of the RFS program. A RIN is generated when renewable fuel is produced, which can be bought and sold separately from the fuel. Learn more about RINs.

The EPA issued 29 full and partial Small Refinery Exemptions (SREs), allowing refineries to avoid some or all of their obligations under the Renewable Fuel Standard (RFS). In total, 1.76 billion RINS are being exempted.

Learn more about how the RFS requirements work

The EPA will propose reallocating 100% of the difference between the projected and actual 2025 exempted volumes into the Renewable Volume Obligations (RVOs) for 2026 and 2027. EPA says it plans to propose the reallocation before the end of October.

“We look forward to the EPA fully reallocating those volumes from the announced exemptions. This is another win for the biofuel industry,” said Maroa, Illinois farmer and IL Corn Growers Association President, Mark Bunselmeyer. “Illinois corn farmers need certainty and strong domestic markets for their crop, and ethanol is an important part of that equation.”

IL Corn will continue to closely follow EPA’s reallocation process and push for policies that protect and expand opportunities for ethanol.

Learn more about the RFS and SREs