EPA Weighs Reallocating Renewable Fuel Volumes
Industry groups testified at a virtual hearing on restoring renewable fuel volumes lost to small refinery exemptions.
Updated on Nov. 4, 2026 in Electric Vehicles
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Should the government require more renewable fuel blended into gasoline and diesel?
The Environmental Protection Agency held a virtual hearing Wednesday on its proposed plan to reallocate renewable fuel volumes lost to recent small refinery exemptions. Representatives of the Renewable Fuels Association, American Coalition for Ethanol, and Clean Fuels Alliance America testified in support of reallocation.
Why it matters
Without full reallocation, renewable fuel credits freed up by the exemptions can be carried forward to meet future obligations, reducing demand for newly produced renewable fuels. The outcome affects producers across the biofuel supply chain.
The proposal covers 770 million additional renewable identification numbers (RINs) exempted beyond the volume anticipated in the Set 2 rule. The Renewable Fuels Association backs reallocating 100 percent of that amount, while the final split between 2026 and 2027 obligations remains unsettled.
The players
Environmental Protection Agency
The federal agency that administers the Renewable Fuel Standard program and is proposing the reallocation of exempted renewable fuel volumes.
Renewable Fuels Association
A national trade association representing the U.S. ethanol industry, which disagrees with the small refinery exemptions and urges EPA to finalize the rule quickly.
American Coalition for Ethanol
An advocacy group representing ethanol producers that supports the reallocation plan at the hearing.
Clean Fuels Alliance America
A trade group representing the biodiesel, renewable diesel, and sustainable aviation fuel industries that backs equal reallocation across 2026 and 2027 obligations.
The details
Testimony at the hearing was submitted by representatives of the Renewable Fuels Association, American Coalition for Ethanol, and Clean Fuels Alliance America. Clean Fuels Alliance America proposed reallocating the gallons equally to 2026 and 2027 volume obligations and asked EPA to finalize the supplemental rule by year's end.
Timeline
October 2026: EPA announced the proposed reallocation plan.
November 4, 2026: EPA held the virtual hearing.
End of 2026: Clean Fuels Alliance America requests completion of the final rule.
Roadmap
The reallocation plan is an adjustment to the Renewable Fuel Standard, the federal program that sets annual volume obligations for renewable fuels blended into U.S. transportation fuel. Its outcome will shape how quickly renewable diesel, biodiesel, and sustainable aviation fuel capacity expands across the country.
Drivers and fuel buyers may see the effect of renewable fuel policy in the blend of gasoline and diesel they purchase, though the exact price impact depends on the final rule. Renewable fuel producers and the companies building new biodiesel, renewable diesel, and sustainable aviation fuel capacity are directly affected by how many credits remain in circulation.
The takeaway
Full reallocation would keep demand for newly produced renewable fuels higher than if exempted credits were carried forward. Readers tracking EV and clean-fuel policy should watch whether EPA finalizes the rule before the end of 2026.
Further reading
For broader context on fuel policy, see Electric Vehicles coverage on Wisevoter.
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Should the government require more renewable fuel blended into gasoline and diesel?
