Overview

• Sources say the EPA plan under review would reassign about 50% or less of recently exempted blending obligations, leaving roughly 550 million gallons unaccounted for and likely pressuring RIN prices.
• The review covers 2023 and later years because earlier RINs have expired, following EPA’s clearance of more than 170 small refinery exemption petitions dating back to 2016.
• Republican Senators Mike Lee, John Barrasso, and Bill Cassidy introduced the Protect Consumers from Reallocation Costs Act of 2025 to prohibit EPA from reallocating waived volumes.
• Biofuel producers and farm-state lawmakers urge full restoration of exempted gallons, while refiners and the AFPM trade group oppose shifting obligations to larger plants.
• The administration is expected to unveil its approach in the coming weeks, a choice that could divide Republicans as budget deadlines approach and 2026–2027 biofuel quotas near finalization.