EPA Proposes Higher Biofuel Blending Targets for Large Refiners

The U.S. Environmental Protection Agency proposed requiring larger refiners to increase biofuel blending over the next two years by reallocating 100% of waived renewable fuel volume obligations from small refineries, according to an Investing.com report. The proposal shifts the burden for exempted volumes to larger market participants for the 2025 compliance year.

Implementation Options Under Review

The agency outlined two distinct approaches for public comment regarding how the waived volumes should be distributed across future compliance cycles. Under the first option, the additional 2025 small refinery exemption volume would be divided equally between the 2026 and 2027 compliance years. Under the second option, the entire volume would be assigned exclusively to 2027.

Public Comment Deadline and Next Steps

These regulatory changes affect 29 small refineries that received volume exemptions for the 2025 compliance period. The agency has established a strict submission window for industry stakeholders and the public.

The EPA stated that public comments on both proposed implementation pathways must be submitted by December 4, 2026.