United States Environmental Protection Agency logo and U.S. flag are seen in this illustration taken April 23, 2025.
The RFS mandates that fuel producers blend billions of gallons of ethanol and other renewable fuels into the U.S. fuel supply annually. However, small refineries may apply for exemptions if they can demonstrate that compliance would cause them significant financial hardship. The exemption program has long been a point of contention between oil refiners seeking relief from blending costs and biofuel producers who argue that such waivers reduce the demand for renewable fuels.
The EPA stated that the latest approvals follow a series of similar decisions earlier this year, during which the agency granted 140 petitions in full or in part while denying 28. With Friday’s announcement, only a small number of pending applications remain under review. Specifically, the EPA said it now has 15 active petitions — 12 for the 2025 compliance year and three from prior years.
The decision drew criticism from biofuel industry representatives, who warned that the waivers could negatively affect renewable fuel demand and agricultural producers. Renewable Fuels Association (RFA) President and CEO Geoff Cooper said: “Today, EPA created even more uncertainty and confusion in the renewable fuel and agriculture markets, which are already under immense pressure from record corn and soybean harvests this fall.” Cooper emphasized that the industry relies on consistent policy implementation to support rural economies and maintain confidence among farmers and investors.
The agency explained that its decisions were based on careful evaluation of financial data and refinery-specific circumstances. The EPA reaffirmed its commitment to balancing the goals of energy security, environmental protection, and economic stability while administering the RFS program.
Industry analysts noted that Friday’s announcement signals an effort by the EPA to resolve long-standing disputes over small refinery exemptions and bring greater regulatory clarity to the biofuel sector. The move comes as policymakers and energy companies continue to navigate the challenges of promoting renewable energy development while ensuring the competitiveness of domestic fuel production.
With the backlog nearly cleared, the EPA’s latest action marks a significant step in streamlining the exemption review process. The agency’s future decisions will likely continue to shape the balance between the interests of oil refiners and renewable fuel producers, both of which play critical roles in the U.S. energy and agricultural markets.
