The American Soybean Association is raising concerns that small refinery exemptions for the 2025 Renewable Fuel Standard compliance year could significantly exceed previous government projections, potentially reducing domestic biofuel demand and hurting U.S. soybean farmers.
Recent reports and analysis indicate small refinery exemptions could total more than 1.8 billion Renewable Identification Number credits under a revised methodology being developed. That would be nearly twice the level the Environmental Protection Agency assumed when it finalized the 2026-27 Renewable Volume Obligation Rule.
The final biofuel blending rule, published earlier this year by the Trump administration, included historic increases in biofuel volumes intended to boost domestic demand for biofuels and U.S. soybeans. ASA previously supported the administration and EPA for policies designed to increase demand, encourage industry investment and improve local on-farm basis levels.
ASA said approving small refinery exemption petitions at levels significantly above the assumptions used in the current biofuel blending rules could undermine those gains. The association estimates the increased exemptions could eliminate about 500 million gallons of biomass-based diesel demand and cost U.S. soybean farmers approximately $1 billion in lost revenue.
Biomass-based diesel provides a major domestic market for soybean oil, supporting soybean prices, rural employment and economic activity. ASA said reducing demand through expanded refinery exemptions would conflict with efforts to strengthen domestic energy production and rural economies.
ASA has long opposed compliance waivers, also known as small refinery exemptions, arguing they weaken the Renewable Fuel Standard by reducing biofuel demand and lowering the value of soybean crops.
The association is urging President Donald Trump and White House officials to reject proposals that would broaden the formula used to determine refinery exemptions from biofuel blending requirements. ASA instead wants exemptions maintained at levels no greater than those estimated by EPA using historical market data when the current biofuel blending rule was published.
ASA said American-grown biofuels help diversify the nation's fuel supply while providing a reliable domestic market for agricultural products. The association warned that expanding exemptions could undermine recently increased biofuel markets and reduce the benefits those markets provide to soybean farmers and rural communities.
Source: American Soybean Association, "ASA Sounds Alarm: Soybean Farmers Cannot Afford Another Blow to Domestic Demand"