September 18, 2025

ICYMI: Congress Moves to Rein in EPA’s Extreme Ethanol Mandates

In case you missed it, the EPA announced yesterday it is seeking public input on whether to reallocate 100% of Renewable Volume Obligations (RVOs) from small refinery exemptions (SREs), 50%, or another amount, to refiners that do not receive exemptions, raising refining costs and consumers gas prices in the process. 

The Fueling American Jobs Coalition responded: 

“America cannot have energy security, energy independence, or affordable consumer fuels without American independent refiners. Yet, EPA is doubling down on misguided ethanol mandates that threaten the future of America’s remaining independent refiners.” 

This misguided proposal comes just days after several members of Congress urged the Environmental Protection Agency (EPA) to correct course and protect American refinery workers as EPA reviews public input on its draft 2026–2027 Renewable Volume Obligations (RVOs) under the Renewable Fuel Standard (RFS). 

Environmental Protection Agency’s (EPA) proposed rulemaking revising Renewable Fuel Standard (RFS) “Set 2” renewable volume requirements (RVOs) for 2026 and 2027. The proposal asks for public input on the reallocation of 100% of RVOs from small refinery exemptions (SREs), 50% of those exemptions, or another amount. 

Members of Congress Urge EPA to Lower RVOs 

Dozens of members of Congress asked EPA Administrator Lee Zeldin to lower the agency’s proposed RVOs “to maintain the viability of the liquid fuel manufacturing industry and keep energy costs low for American consumers and businesses.”   

The 42 lawmakers warned that EPA’s proposal threatens U.S. refiners and America’s energy security. They asked EPA to align its RVOs with market realities and urged the administrator to prevent reallocation of compliance burdens from exempted small refineries onto other refiners, which would “place an undue burden” on other refiners and “create significant disruptions in the fuel market.” 

Separately, Rep. Brian K. Fitzpatrick (R-PA), Co-Chair of the Bipartisan Building Trades Caucus, wrote his own letter to Administrator Zeldin earlier this month. He emphasized the need to protect refinery workers and highlighted their role as the foundation of America’s energy, writing: 

“When finalizing this rule, I request your full and fair consideration of the impact the refining sector has on the American economy. The rulemaking should seek to maintain stability in the domestic fuels market and to sustain a strong, competitive industry that is vital to our nation’s energy strategy.” 

Senator Moves to Protect Refiners 

Across Capitol Hill, in the Senate, Sen. Mike Lee (R-Utah) introduced the Protect Consumers from Reallocation Costs Act of 2025, which would block EPA from shifting compliance burdens onto other refiners. The Fueling American Jobs Coalition released a statement backing the bill, stating: 

“Protecting independent refiners from reallocation mandates is essential to preserving America’s refining capacity and safeguarding the livelihoods of thousands of American workers who keep our energy supply secure.” 

 

Read FAJC’s full statement on EPA proposed reallocation here. 

Read the Congressional letter here. 

Read FAJC’s full statement on Senator Lee’s Bill here. 

Read Brian K. Fitzpatrick (R-PA)’s letter here.