SABR Encouraged by EPA’s Actions on Small Refinery Exemptions

The agency’s intention to propose a supplemental rule reallocating the exempted volumes from 2023 and 2024 provides some clarity to markets.

JEFFERSON CITY, MO, UNITED STATES, August 22, 2025 /EINPresswire.com/ -- The Sustainable Advanced Biofuel Refiners (SABR) Coalition, a national biodiesel trade association made up of over 70 organizational members throughout the biodiesel value chain, is encouraged by U.S. EPA’s announcement today of its much-anticipated ruling on small refinery exemption (SRE) petitions, and importantly, how the agency said it intends to handle the exempted volumes.

A total of 175 SRE petitions from 2016 through 2024 representing 5.34 billion gallons have been at stake prior to today’s announcement, providing significant uncertainty to markets. EPA announced that it is granting full exemptions to 63 petitions and partial exemptions to 77 while denying 28 others and determining seven petitions to be ineligible.

Of the SRE petitions from 2016 through 2022, EPA advised that the agency will be returning the exempted renewable identification number (RIN) credits that were previously retired but, since these RINs were expired for purposes of compliance, they will not impact current volumes. For petitions granted from 2023 and 2024, which exempt 1.4 billion RINs, EPA said it will soon propose a supplemental rule to reallocate those exempted volumes to compliance years 2026 and 2027.

While it is unclear what this will mean for 2025 volumes, the announced intention to propose a supplemental rule reallocating the exempted volumes is welcome news and provides at least some clarity to markets.

The markets reacted to the announcement with RINs jumping 9% and the bean oil/heating oil (BOHO) spread up 8%. SABR will be working with its members to provide substantive comments to the supplemental proposed rule once it is published, and with EPA to ensure that the exempted gallons are effectively reallocated so that volumes for 2025 through 2027 are not materially diluted.

“We commend EPA for its small refinery exemption announcements today and for its stated commitment to get the RFS program back on track,” said SABR CEO Joe Jobe. “We look forward to working with EPA and the administration to see that the RFS realizes its potential to boost our energy supply with clean, home-grown energy like biodiesel that brings economic benefits to our farmers, biodiesel producers, distributors, retailers, consumers and the economy as a whole.”

The EPA’s press release, which includes an announcement to propose a supplemental rule to reallocate exempted volumes, can be found here. Summaries of the SRE rulings and the notice can be found on EPA’s website.

About the SABR Coalition
Sustainable Advanced Biofuel Refiners (SABR) is a coalition of stakeholders that have invested in building out America’s first advanced biofuel—biodiesel. Biodiesel is the most cost-effective means to reduce greenhouse gas (GHG) emissions from medium- and heavy-duty vehicles, providing numerous economic, environmental and energy security benefits. It is produced from renewable resources such as soybean oil, used cooking oil and animal fats. SABR includes stakeholders from every link in the value chain from feedstock growers to biodiesel producers, distributors, retailers and consumers, as well as infrastructure, product and service providers. For more information, please visit www.sabrcoalition.org.

Joe Jobe
Sustainable Advanced Biofuel Refiners (SABR) Coalition
+1 573-680-1948
joe@rockhouse.us
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