Growth Energy Celebrates Historic RVOs and SRE Reallocation
WASHINGTON, D.C.—Growth Energy, the nation’s largest biofuel trade association, applauded President Donald Trump, Environmental Protection Agency Administrator Lee Zeldin, and U.S. Department of Agriculture (USDA) Secretary Brooke Rollins for helping to deliver the largest renewable volume obligations (RVOs) in the nation’s history. Growth Energy also welcomed news that EPA would account for a number of small refinery exemptions (SREs) by reallocating 70% of those volumes.
“With this rulemaking, EPA and the administration are reinforcing their unwavering support for American-made biofuels and sending a strong signal about the continued role biofuels like ethanol will play in delivering American energy dominance and greater prosperity to the heartland,” said Growth Energy CEO Emily Skor. “We commend President Trump, EPA Administrator Zeldin, and USDA Secretary Rollins for working together to finalize this historic, growth-oriented proposal, which opens the market for more than 15 billion gallons of conventional biofuel in 2026 and 2027.
“USDA also deserves our industry’s thanks for its advocacy on behalf of American farmers—the agency worked tirelessly to ensure that the final RVOs reflected the President’s agenda for unleashing American energy and restoring prosperity to rural America. With so many farm families struggling to make ends meet, we must take every opportunity to build reliable, domestic markets for American agriculture.
“Furthermore, we applaud EPA for making the decision to reallocate 70% of all gallons lost to 2023-2025 SREs. This provides clarity and predictability across the liquid fuel supply chain, while guaranteeing that the new markets promised to American farmers and biofuel producers as part of the RVOs are not destroyed by costly exemptions.
“We are grateful to President Trump and his administration for its steadfast support for homegrown biofuels, and for setting a new high watermark for American ethanol. We look forward to continuing our work with EPA and Congressional champions as we continue to find ways to strengthen domestic energy security and open new market opportunities for U.S. farmers and rural communities.”
BACKGROUND
Under the RFS, EPA sets the number of gallons of renewable fuels (such as biofuels) that must be blended into the nation’s total fuel supply each year. Those renewable volume obligations (RVOs) apply to fuel producers (petroleum refiners) and importers, otherwise known as “obligated parties.” Each obligated party is required to blend a certain percentage of renewable fuels into the transportation fuel they produce or import to meet the nationwide RVO. The law also allows EPA to grant exemptions from RFS blending requirements to certain refiners (SREs) in rare circumstances when a refiner demonstrates “disproportionate economic hardship” in its efforts to comply with the RFS.
On June 13, 2025, EPA proposed RVOs for 2026-2027, proposing that refiners must blend at least 15 billion gallons of conventional biofuels (i.e., ethanol) into the nation’s fuel blend for each plan year. The RVO proposal—also called the Set 2—also included requirements to blend more than one billion gallons of cellulosic biofuel, more than seven billion gallons of biomass-based diesel, and more than nine billion gallons of advanced biofuel for each plan year. Altogether, EPA’s proposal would require the blending of more than 24 billion gallons of renewable fuel each year, making it the largest RVO proposal in the program’s history.
On August 22, 2025, EPA released its decisions on 175 pending SRE petitions, covering compliance years 2016-2024. In all, EPA granted a total of 140 petitions: 63 full exemptions and 77 partial (50%) exemptions.
At the time, EPA also announced that it would release a supplemental proposal to its proposed Set 2 RVO to reallocate exempt SRE gallons from 2023-2025 compliance years to the 2026 and 2027 compliance years covered by Set 2. Although it had not yet issued decisions on 2025 SRE petitions, EPA estimated upwards of 2.1 billion 2023-2025 RINs were potentially subject to reallocation. Under this approach, refiners would be required to make up for lost gallons from those years, ensuring that SREs don’t compromise renewable fuel demand.
EPA released the supplemental proposal on SRE reallocation on September 16, 2025. It indicated that the agency is considering accounting for “volumes representing complete (100 percent) reallocation and 50 percent reallocation for SREs granted in full or in part for 2023 and 2024, as well as those projected to be granted for 2025, as part of the ongoing RFS rulemaking.” Growth Energy provided substantive comment in response to EPA’s proposal.
In November 2025, EPA also issued decisions on 16 SRE petitions for the 2021 through 2024 RVO compliance years. EPA granted 2 full exemptions and 14 partial (50%) exemptions and denied 2 petitions. The November 2025 exemptions totaled 740 million RINs, 510 million of which were for the 2023 and 2024 RVO compliance years.
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The TOBI award for Technical & Regulatory was presented to Dr. Bob McCormick. Dr. McCormick’s research has amassed over 16,000 citations and has been instrumental in advancing new ethanol markets, from mid-level blends to aviation and marine fuel. As a senior research fellow and platform leader for fuels and combustion research at the National Laboratory of the Rockies, Dr. McCormick’s expertise is critical to accelerating bioethanol adoption across all applications.