
On Tuesday, the U.S. Environmental Protection Agency (EPA)
proposed requiring large oil refineries to increase the volume of biofuel blending over the next two years. This move comes ahead of the November congressional elections and appears aimed at appealing to voters in agricultural states.
The EPA proposal entails reallocating 100% of the renewable fuel volume obligations from which 29 small refineries were exempted in late August. These exemptions applied to the 2025 compliance year.
The agency outlined two possible approaches and is seeking public comment on both options. The first approach involves evenly distributing the additional volume associated with the small refinery exemptions for 2025 across the 2026 and 2027 compliance years. The second option entails assigning the entire volume to 2027.
The EPA stated that comments must be submitted no later than December 4, 2026.