Clean Fuels Urges EPA to Finalize 2026-27 RFS Rule and Reallocate All Small Refinery Exemptions – American Ag Network

Report on Renewable Fuel Standard Policy and its Alignment with Sustainable Development Goals

Executive Summary

This report details the recent call by Clean Fuels Alliance America for the Environmental Protection Agency (EPA) to finalize the Renewable Fuel Standard (RFS) for 2026-2027 and address the impact of small refinery exemptions (SREs). The failure to fully reallocate these exemptions poses a significant threat to the production of clean fuels, undermining progress toward several key United Nations Sustainable Development Goals (SDGs), including those related to clean energy, economic growth, and climate action.

Policy Context: The Renewable Fuel Standard and Small Refinery Exemptions

The RFS program is a critical policy instrument designed to advance SDG 7 (Affordable and Clean Energy) and SDG 13 (Climate Action) by mandating the inclusion of renewable fuels in the national transportation fuel supply. However, the provision for SREs allows certain refineries to evade these obligations. The EPA’s recent decision to grant additional SREs has prompted concerns that the integrity and objectives of the RFS are being compromised. In response, the EPA has issued a Supplemental Notice proposing to increase future RFS obligations to reallocate the exempted volumes.

Stakeholder Demands and Economic Implications

Clean Fuels Alliance America has outlined specific actions required from the EPA to ensure the RFS program remains effective and supports national sustainability targets. The failure to act threatens the economic viability of the clean fuels sector and related agricultural industries, directly impacting SDG 8 (Decent Work and Economic Growth).

Key Demands Presented to the EPA:

1. Finalize the overdue RFS rule for 2026 and 2027 by December 31.
2. Fully reallocate all SREs granted for the 2023-2025 period.
3. Incorporate a prospective estimate of exempted volumes for the 2026 and 2027 RFS rule.

Projected Negative Impacts of Unaddressed Exemptions:

• A potential loss of billions of gallons in demand for biodiesel and renewable diesel.
• A significant financial loss for farmers, estimated at as much as forty cents per bushel of soybeans, jeopardizing progress on SDG 2 (Zero Hunger) by destabilizing agricultural economies.

Alignment with Sustainable Development Goals

The effective implementation of the RFS is intrinsically linked to achieving multiple SDGs. The current dispute over SREs highlights a critical juncture for U.S. environmental and economic policy.

• SDG 7 (Affordable and Clean Energy) & SDG 13 (Climate Action): SREs directly reduce the volume of biomass-based diesel in the fuel supply, hindering the transition to cleaner energy sources and impeding efforts to mitigate climate change. A full reallocation is necessary to maintain the program’s contribution to these goals.
• SDG 8 (Decent Work and Economic Growth) & SDG 2 (Zero Hunger): The demand destruction caused by SREs threatens jobs within the clean fuels industry and severely impacts the livelihoods of farmers. Ensuring policy stability supports rural economies and the agricultural sector, which are foundational to these goals.
• SDG 12 (Responsible Consumption and Production): The RFS is a mechanism to promote more sustainable production and consumption patterns in the energy sector. Upholding the mandated volumes by reallocating exemptions is essential for driving this systemic shift.

Conclusion

Clean Fuels Alliance America urges the EPA to uphold its commitment to the RFS by ensuring that 100% of exempted volumes are reallocated in the forthcoming 2026-2027 rule. This action is critical not only for the stability of the clean fuels and agricultural sectors but also for ensuring that U.S. policy continues to make meaningful contributions toward achieving global Sustainable Development Goals.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 7: Affordable and Clean Energy

   The article focuses on “Clean Fuels,” specifically “biodiesel and renewable diesel,” which are forms of renewable energy. The entire discussion revolves around the Renewable Fuel Standard (RFS), a policy designed to increase the use of these cleaner energy sources in the transportation sector.

2. SDG 13: Climate Action

   The promotion of clean and renewable fuels is a direct strategy to combat climate change. The RFS rule is a national policy aimed at reducing greenhouse gas emissions from transportation, thus integrating climate change measures into national planning, which is central to SDG 13.

3. SDG 2: Zero Hunger

   The article explicitly links the clean fuels policy to the agricultural sector, mentioning that “farmers stand to lose as much as forty cents on every bushel of soybeans.” This highlights the policy’s direct impact on farmer incomes and the economic viability of agriculture, which is a key component of SDG 2.

4. SDG 8: Decent Work and Economic Growth

   The article discusses the economic health of the “biodiesel and renewable diesel producers,” an industry that provides jobs and contributes to economic growth. The potential loss of “billions of gallons of demand” directly threatens the economic productivity and stability of this sector.

5. SDG 12: Responsible Consumption and Production

   The RFS program encourages a shift in production and consumption patterns away from fossil fuels towards more sustainable, biomass-based alternatives. The article’s focus on ensuring the RFS volumes are met supports the goal of achieving more sustainable management and use of resources.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. SDG 7: Affordable and Clean Energy

   • Target 7.2: “By 2030, increase substantially the share of renewable energy in the global energy mix.” The article’s central theme is the enforcement of the Renewable Fuel Standard (RFS) to ensure that mandated volumes of renewable fuels like biodiesel are produced and used, directly contributing to this target.

2. SDG 13: Climate Action

   • Target 13.2: “Integrate climate change measures into national policies, strategies and planning.” The RFS is a clear example of a national policy designed to mitigate climate change by reducing reliance on fossil fuels. The debate over its implementation, such as the “reallocation of small refinery exemptions,” is a discussion about the effectiveness of this integrated national strategy.

3. SDG 2: Zero Hunger

   • Target 2.3: “By 2030, double the agricultural productivity and incomes of small-scale food producers…” While not exclusively about small-scale producers, the article’s concern over farmer incomes is directly related. The statement that “farmers stand to lose as much as forty cents on every bushel of soybeans” shows the RFS policy’s role in supporting the income of agricultural producers.

4. SDG 8: Decent Work and Economic Growth

   • Target 8.2: “Achieve higher levels of economic productivity through diversification, technological upgrading and innovation…” The clean fuels industry represents a diversification of the energy sector and a value-added market for agricultural products. The article highlights the need to protect this industry’s demand to maintain its economic productivity.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. For SDG 7 (Target 7.2):

   • Indicator: Volume of renewable fuel demand. The article explicitly mentions that producers could “lose billions of gallons of demand over the next two years.” This volume (in gallons) is a direct measure of the share of renewable energy in the fuel mix. The “2026 and 2027 RFS obligations” are the specific quantitative targets for this indicator.

2. For SDG 13 (Target 13.2):

   • Indicator: Implementation of national climate policies. The article discusses the finalization of the “overdue 2026 and 2027 RFS rule” and the “reallocation of small refinery exemptions.” The status and enforcement of this rule serve as an indicator of how climate change measures are being integrated and executed at a national level.

3. For SDG 2 (Target 2.3):

   • Indicator: Commodity prices for agricultural producers. The article provides a specific, measurable economic indicator: the potential loss of “forty cents on every bushel of soybeans.” This directly reflects the impact of the RFS policy on farmer income.

4. Table of SDGs, Targets, and Indicators

Source: americanagnetwork.com