Date of Publication: 2025-09-18**EPA Proposes Updated Renewable Fuel Standards for 2026-2027, Reevaluating Small Refinery Exemptions**
The U.S. Environmental Protection Agency (EPA) has released a supplemental proposal to its Renewable Fuel Standard (RFS) program, outlining revised volume and percentage targets for various renewable fuels in 2026 and 2027. This update specifically reconsiders the impact of decisions made on 175 petitions for small refinery exemptions (SREs) issued in August 2025. The EPA is now proposing adjustments to the renewable fuel volumes, including scenarios for 100 percent and 50 percent reallocation of SREs granted for 2023 and 2024, as well as those anticipated for 2025. This supplemental information aims to provide a clearer basis for calculating the final RFS percentage standards for the upcoming years.
This notice from the EPA does not involve direct financial allocations or specific grants to States, Cities, or Tribes related to disaster recovery programs. Instead, it addresses regulatory volumes and percentage standards for renewable fuels under the RFS program, which impacts fuel producers and obligated parties within the energy sector. No specific dollar amounts or grant beneficiaries for disaster recovery are mentioned in this rulemaking.
**Key Takeaways:**
* **Revised Volume Proposals:** The EPA is co-proposing additional renewable fuel volumes for 2026 and 2027, taking into account recent decisions on small refinery exemptions (SREs). (Legal Summary)
* **SRE Impact Reconsideration:** This supplemental proposal explicitly incorporates the anticipated effects of decisions made on 175 small refinery exemption petitions, reflecting a more complete understanding of their market impact. (Legal Summary)
* **Reallocation Scenarios:** The proposal details two reallocation scenarios for SREs – complete (100 percent) and partial (50 percent) – for exemptions granted in 2023 and 2024, and projected for 2025. (Legal Summary)
* **Informing Future Standards:** New information is provided to better project SREs, which will be critical in finalizing the RFS percentage standards for 2026 and 2027. (Legal Summary)
**Why This Matters:**
While this Renewable Fuel Standard (RFS) notice does not directly pertain to CDBG-DR funding or disaster recovery program operations, regulatory shifts in the energy sector can have broader economic implications. Changes in fuel standards or costs, even indirectly, could influence supply chain stability, transportation expenses, and the general economic conditions within regions undertaking long-term recovery efforts. Disaster Recovery Managers and Grant Administrators should maintain awareness of such significant federal rulemakings as part of a comprehensive understanding of the national economic and regulatory environment that can subtly affect program sustainability and resource allocation.
**What Actions to Take Now:**
1. **Review the Full Supplemental Notice:** Managers interested in broader economic and energy policy impacts may consider reviewing the complete text of the Supplemental Notice of Proposed Rulemaking once published to understand the detailed implications for the energy sector.
2. **Monitor Related Economic Indicators:** Stay informed on general economic and energy market trends, as these can indirectly influence the cost and availability of resources relevant to recovery projects.
3. **No Direct CDBG-DR Program Actions:** No immediate action, such as Action Plan amendments, reporting changes, or specific grant application adjustments, is required for CDBG-DR programs based on this particular RFS notice.
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CATEGORY: Proposed Rules – Notice of Proposed Rulemaking (NPRM)
