Small Refinery Exemptions Offer a Mixed Bag for Farmers

TOPICS

Renewable Fuels Standard Biofuels Ethanol

Brian Glenn

Director, Government Affairs

Chad Smith

Associate News Service Editor, NAFB

photo credit: AFBF Photo, Sydney Garrett

Brian Glenn

Director, Government Affairs

Chad Smith

Associate News Service Editor, NAFB

The Environmental Protection Agency’s announcement of several small refinery exemptions offered mixed news for U.S. farmers. Chad Smith reports.

Smith: The Environmental Protection Agency granted 29 Small Refinery Exemptions under the Renewable Fuel Standard this week. Brian Glenn, director of government affairs for the American Farm Bureau Federation, said the exemptions create a shortfall for biofuels demand by allowing small oil refineries to blend less biofuel into the U.S. fuel supply.

Glenn: Compliance with this is tracked through Renewable Identification Numbers or RINs. A small refinery exemption allows a qualifying refinery to temporarily opt out of its renewable fuel blending obligations.

Smith: While these exemptions would generally result in less demand for American-grown biofuels, EPA pledged to make up the difference in upcoming years.

Glenn: EPA announced that they are exempting 1.76 billion Renewable Fuel Standard compliance credits, known as RINs, for 29 small refineries. They commit to proposing to reallocate 100 percent of the difference between projected and actual exempted volumes for 2025 into the 2026 and 2027 renewable fuel obligations.

Smith: The commitment to reallocating the missed gallons of biofuel should help bolster an important market for U.S. agriculture.

Glenn: The 100 percent reallocation proposed by EPA is extremely important to maintain robust demand for American-grown crops. We are pleased to see our concerns were heard, and EPA is proposing to reallocate 100 percent of exempted renewable fuel.

Smith: Learn more on the Farm Bureau Intel page at fb.org. Chad Smith, Washington.

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