Clean Fuels Alliance warns U.S. Environmental Protection Agency (EPA) of up to $7.5 billion impact on soybean sector if small refinery exemptions are not fully reallocated
Clean Fuels Alliance America has urged the EPA to fully reallocate small refinery exemptions (SREs) granted from 2023 to 2025, warning that partial or no reallocation could cost U.S. soybean farmers and processors billions of dollars over the next two years.
In a letter to EPA Administrator Lee Zeldin, Clean Fuels highlighted projections showing losses ranging from $3.2 billion to $7.5 billion in crop value tied to the agency’s proposed supplemental “SRE reallocation volume” for 2026 and 2027 renewable fuel standard (RFS) volumes. The EPA is considering co-proposals to either fully (100%) or partially (50%) account for exempted volumes, with comments open on other options, including no reallocation.
The analysis, conducted by World Agricultural Economic and Environmental Services, estimates that a 50% reallocation would result in 490 million gallons less biomass-based diesel production, $1.4 billion in lost soybean farm revenue, and a $1.8 billion decline in soybean product value to crushers. A 0% reallocation would double those losses.
“U.S. soybean growers are harvesting a projected 4.3 billion bushels worth $43 billion this season,” Clean Fuels Vice President Kurt Kovarik said. “Supporting continued growth of U.S. biomass-based diesel is crucial right now to support American farmers and the agricultural economy.”
With global competition and trade challenges mounting, the group emphasized that protecting biomass-based diesel volumes is vital to sustaining the value of U.S. soybeans.
