The Environmental Protection Agency (EPA) has proposed record-high ethanol volumes under the Renewable Fuel Standard (RFS) and a Small Refinery Exemption reallocation scheme that would shift unsustainable regulatory burdens and compliance costs on New Jersey’s last remaining independent refiners.
What's at Stake for New Jersey
Before the pandemic, New Jersey’s state and regional refineries contributed $4.2 billion to the Garden State’s GDP and more than $12.3 billion in total economic output. More recent data shows that refiners support over 48,000 direct, indirect, and induced jobs in the state. If finalized, EPA’s proposal would hike costs on refiners and have consequences for consumers throughout the Garden State.
- Independent refiners at risk: Many refiners already spend more on RFS compliance credits than on salaries, benefits, and operational costs combined.
- Union jobs on the line: Thousands of high-quality, family-sustaining jobs— many held by highly skilled craft professionals—could disappear if EPA’s unrealistic mandates trigger additional refinery shutdowns or conversions.
- Higher energy and fuel costs: Experts say the RFS already adds 20–30 cents to every gallon of gasoline. EPA’s new proposal would drive prices even higher.
- Energy security at risk: With only a few refineries remaining to serve more than one-third of the U.S. population along the East Coast, just one refinery shutdown could increase our nation’s dependence on foreign fuel imports.
New Jersey Voices Unite
A diverse coalition of unions, environmental groups, regional job creators, industry advocacy groups, and state/local elected officials across New Jersey submitted public comments urging the EPA to abandon its unrealistic mandates and reckless SRE reallocation proposal.
Organized labor leaders and unions
- United Steelworkers: “We represent nearly 30,000 refinery workers who have high-wage jobs with good benefits and safety standards…The consequences of this proposal for 2026 and 2027 could have devastating consequences for USW members who work at refineries…”
Bipartisan elected officials
- Senator Anthony Bucco (LD-25): "Unfortunately, the RFS program has already become a hidden tax on everyday Americans—especially middle- and lower-income households—who purchase gasoline and home heating oil. Data suggests the RFS contributes as much as 30 cents more per gallon to the cost of fuel due to the outsized costs of compliance credits and their cascading impacts across the energy supply chain.”
- Senator Holly Schepisi (LD-39): “History shows that these unrealistic biofuel mandates will increase RIN prices without boosting biofuel use or significantly changing projected travel demand and subsequent biofuel consumption.”
- Senator Latham Tiver and Assemblyman Michael Torrissi (both LD-8): “We cannot afford to continue to jeopardize the survival of our region’s refineries, especially at a time when we are seeking to unleash America’s affordable and reliable energy and natural resources…we must take fair steps to protect our domestic refineries, the thousands of union jobs they create, and our energy independent from foreign countries.”
- Assemblymembers Gerry Scharfenberger (LD-13), Vicky Flynn (LD-13), Paul Kanitra (LD-10), Rob Clifton (LD-12), Alex Sauickie (LD-12), Al Barlas (LD-40): “Our region’s independent refiners are critical to our energy and national security, as they provide much-needed diversity for our national fuel production capabilities. It was not long ago that the Northeast boasted a dozen refineries. Today, only four remain. To put this into perspective with respect to regional fuel supply, the Northeast has lost 1.5 million barrels per day—or roughly 70%—of its refining capacity, making states like New Jersey more dependent than we should be on imported fuel from foreign countries. We cannot afford to continue to jeopardize the survival of our region’s refineries…”
- Assemblyman Brian Rumpf (LD-9): "High fuel costs caused by a broken RFS, or in the worst case, caused by regional refinery closures, would have devastating effects on our communities, our residents, and the businesses that sustain Ocean County.”
- Assemblyman Michael Inganamort (LD-24): “the RFS and its costly, broken compliance system have already contributed to the closure of at least four refineries across the country. This alarming trend puts additional pressure on the remaining independent refineries, including that operate in or supply finished fuels to New Jersey.”
- Assemblyman Erik Peterson (LD-23): “The 2026 and 2027 ROV rules risk compromising energy affordability and supply security in New Jersey and lack the infrastructure to efficiently blend or distribute the mandated volumes of renewable fuels.”
Business advocacy groups and regional job creators
- Chamber of Commerce of Southern New Jersey: “Absent reforms, independent refiners will only be able to last for so long because they’re spending more on RIN costs each year than all other operational costs combined. These compliance costs are jeopardizing the future of our few remaining East Coast refineries."
- Maritime Exchange for the Delaware River & Bay: “Refineries in our region (Pennsylvania, New Jersey, and Delaware) have been crucial industry partners for generations… This is an unsustainable path that represents an existential threat to the continued existence of these facilities.”
- New Jersey Gasoline, C-Store, Automotive Association (NJGCA): “A broad coalition of local, state, and federal elected officials have all agreed in a bipartisan fashion that fixing the RFS is a critical issue that requires immediate attention. And so have many different entities in the broader business community who are directly impacted by the unintended consequences that are plaguing this broken program.”
- BrandSafway: “This is a critical issue for our region, and without a change to the program's current structure, starting with the proposed blending requirements for 2026 and 2027, the goals of the program will not be met, and our national and energy security — along with tens of thousands of good paying jobs — will be at risk.”
- J.J. White, Inc.: “RINs have skyrocketed in cost for a combination of reasons, including high demand, limited supply, speculation in the market by non-refiners, and a flawed program design desperately in need of an overhaul.”
- MP Projects, Inc.: “For years, independent refiners have been raising the alarm about the crushing financial costs of RFS compliance…RIN prices have fluctuated wildly, with prices spiking in recent years for no rational reason. Eventually, these compliance costs will be more than many independent refiners can continue to withstand.”
Environmental groups and conservationists
- Earthjustice, National Wildlife Federation, Friends of the Earth, GreenLatinos, Sierra Club, and more: “These large, arbitrary increases in volume obligations are unjustified by EPA’s own detailed analysis that clearly shows that the proposed volumes would, in fact, harm both the environment and American consumers.”
- Union of Concerned Scientists: “These mandates can only be met with a combination of imports and counterproductive shuffling of vegetable oil out of food markets and into fuel markets, where it will be backfilled with increased imports in these markets. This will raise fuel prices for drivers, increase the deficit, raise food prices, increase global hunger and accelerate deforestation.”
