The EPA has proposed reallocating 100% of the biofuel obligations it waived for small oil refineries in 2025 onto larger refiners, a move that could support soy oil prices if it clears final hurdles. The proposal follows an Aug. 31 decision granting 1.76 billion RINs worth of exemptions — full waivers for 18 refineries and partial waivers for 11 more — the largest exemption package ever issued under the Renewable Fuel Standard.
Oil refiners cited compliance costs and high RIN prices to justify hardship relief, even as the industry posted strong earnings. Several exempted refiners, including Par Pacific, reported banner results, with its Montana and Wyoming plants earning more than $34 per barrel in the second quarter — nearly double the prior year. Marathon Petroleum, Phillips 66 and Valero together earned $12.6 billion in that same quarter, up almost $10 billion year-over-year. Meanwhile, USDA projects net farm income will slip 2.6% this year despite roughly $50 billion in taxpayer support.
Farm and biofuel groups welcomed EPA's proposal but urged swift finalization. Renewable Fuels Association CEO Geoff Cooper said most exemptions were unjustified, but added the new plan, "if finalized as proposed, will help offset the demand loss for ethanol producers and farmers."
Clean Fuels Alliance America's Kurt Kovarik urged EPA to extend volume additions into 2026 and 2027 to send a clear market signal.
This synopsis was created with the use of AI.