Protect Consumers from Reallocation Costs Act of 2025
The Protect Consumers from Reallocation Costs Act of 2025 would tighten how the Renewable Fuel Standard (RFS) treats small refineries that receive exemptions from their obligated volumes. Specifically, it would bar the EPA from reallocating any renewable fuel obligation tied to a small refinery with an extension of an exemption to other parties. At the same time, it would require that the gasoline or diesel produced by that exempt small refinery be counted toward the total volume produced or imported by the owner of that refinery when determining the owner’s renewable fuel obligations for the year. In short, the bill would prevent shifting the burden of exempt volumes to other refiners and would keep those volumes tied to the owning entity. These changes aim to reduce cost-shifting in the RFS market and ensure that exemption-related volumes remain within the entity that owns the exempt refinery, rather than being allocated to others.
Key Points
- 1Prohibition on reallocation: The Administrator may not reallocate the renewable fuel obligation of a small refinery that has an extension of an exemption to other parties for any calendar year.
- 2Inclusion of exempt refinery volumes: When calculating a person’s annual renewable fuel obligation, include the gasoline or diesel produced by the small refinery owned or operated by that person that has the exemption, in that person’s total production for the year.
- 3Scope of amendment: These changes would amend Section 211(o)(9) of the Clean Air Act to implement the prohibition and the inclusion requirement.
- 4Purpose and effect: The rule aims to prevent cost-shifting to other refiners and to keep exemption-related obligations and volumes tied to the owner of the exempt refinery.
- 5Status: Introduced in the Senate on September 9, 2025, as S. 2742; no stated House companion or enacted provisions at this time.