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Farm, Fuel Groups Celebrate EPA Exemption Proposals

The rule would shift more than 770 million waived credits to later years, a move farm groups say could restore demand for ethanol and biodiesel.

  • On Tuesday, Environmental Protection Agency Administrator Lee Zeldin proposed reallocating 100% of the 1.76 billion renewable fuel volume obligations waived for 29 small refineries in August, restoring demand for corn and soybean-based fuels.
  • Mounting criticism from agricultural groups prompted the action after August exemptions sparked concerns about reduced demand for corn and soybean-based fuels and threatened market stability for biofuel producers.
  • The agency outlined two options for public comment through December 4, 2026: splitting the 1.76 billion RINs evenly between 2026 and 2027 compliance years, or shifting the entire volume to 2027.
  • Renewable Fuels Association CEO Geoff Cooper praised the plan to "offset demand loss," while the American Petroleum Institute warned the move creates planning uncertainty and could increase fuel costs for refiners.
  • The timing coincides with competitive races in Iowa before the November midterm elections, and the EPA noted the proposal may require extending the 2026 compliance deadline past March 31, 2027.
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EPA Proposes 100% Reallocation for Refinery Biofuel Breaks

·New York, United States
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iowaagribusinessradionetwork.com broke the news on Tuesday, October 13, 2026.
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