Ethanol Blog

LINCOLN, Neb. (DTN) -- Though the Trump administration has proposed a rule to reallocate biofuels gallons lost through small-refinery exemptions to the Renewable Fuel Standard, finalizing that proposal is likely to add time to the administration's efforts to finalize RFS volumes for 2026 and 2027, the U.S. Environmental Protection Agency said in a court filing at the end of last week.

In June the EPA proposed what would be a record 24.02 billion gallons of biofuels be blended in 2026, including a 2-billion-gallon jump for biomass-based diesel. The proposal also calls for another bump up for biomass-based diesel in 2027.

That RFS proposal was open to public comment through Aug. 8, 2025.

One week ago, the EPA released a proposal to reallocate RFS gallons lost through small-refinery exemptions, to other larger refining companies.

As a result of the second proposal, the EPA told a federal court as part of an ongoing lawsuit that the finalizing of RFS volumes also will take more time.

A public-comment period on the SRE reallocation proposal is open until Oct. 31, 2025.

So, for those biofuels companies and farmers who were hopeful the RFS volumes would be finalized yet this year, may have to wait on into early next year.

"EPA's timeline for completing the rulemaking will be substantially affected by the number and depth of comments EPA receives on the supplemental notice," the EPA said in a court filing on Sept. 19, 2025, in a lawsuit filed by the Clean Fuels Alliance America and Growth Energy in the U.S. District Court for the District of Columbia.

"EPA must fully consider all significant comments received. EPA must also consider issues associated with impacts on stakeholders, make a final determination on the best course of action, address public comments, draft a final rule, and obtain internal approval on that rule."

The agency will then be required to submit the final rule to the Office of Management and Budget for review and address comments received during an inter-agency review.

"Because of the complexity of the RFS program, including the large number of stakeholders with directly opposing interests, completion of these steps takes considerable time," EPA said in a status report in the case.

"Nevertheless, EPA is working through this process as quickly as it can. Given all of these circumstances, EPA expects it will finalize the rule this winter 2025-2026."

The plaintiffs in that case told the court that it is apparent the RFS volumes for 2026 won't be finalized in time for next year.

"Plaintiffs agree this action will become moot when EPA finalizes its rule setting the 2026 (and 2027) volumes," according to a court document.

"But the case is not moot yet and plaintiffs harbor serious concerns about whether EPA will issue final RFS standards for 2026 in 'winter 2025-2026,' let alone before the compliance year begins on Jan. 1, 2026. The timing of when the 2026 RFS standards are finalized is critical to Clean Fuels' and

Growth Energy's members and industry, yet EPA's statement about its timetable provides no assurance that the final standards will issue in winter 2025-2026, let alone before the end of 2025."

The two biofuels groups said the "most efficient" way to resolve the issue would be to agree through a consent decree to finalize the RFS rule by Dec. 31, 2025.

"Meeting that deadline is more than feasible," the groups told the court.

Read more on DTN:

"EPA Proposes RFS Reallocation Options," https://www.dtnpf.com/…

"Trump EPA Proposes Large RFS Boost," https://www.dtnpf.com/…

Todd Neeley can be reached at todd.neeley@dtn.com

Follow him on social platform X @DTNeeley

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