The Environmental Protection Agency (EPA) plans to propose adding more biofuel blending to refiners’ 2026 and 2027 obligations under the Renewable Fuel Standard (RFS), according to a report from Bloomberg Government on October 13. The proposal would make up for the gap between the small refinery exemptions EPA expected to grant for 2025 and the much larger amount it actually granted.

On August 31, 2026, EPA approved 29 of 34 exemption petitions for 2025, waiving about 1.76 billion RINs. That is roughly 770 million more than the agency projected when it finalized the 2026 and 2027 volumes in March. According to Bloomberg, it was the largest round of exemptions since 2017. EPA now says it will reallocate 100 percent of that difference, which means refiners that did not receive exemptions will carry more of the load. EPA framed the move as a promise to farmers, saying it would ensure “a reliable and durable market” for their crops. Reallocation has been a sore point for the oil industry. The proposed rule is expected by the end of October.

Under the RFS, refiners can meet their obligations by blending biofuels themselves or by buying Renewable Identification Numbers (RINs) from those who do. RIN prices have climbed sharply this year, driven by record-high blending targets and by supply disruptions tied to the war in the Middle East.

Requiring refiners to account for more renewable fuel tends to strengthen demand for RINs and support their value. For retailers who blend biofuels, that added value can help keep blended product competitively priced heading into the heating season. The full impact will depend on the final details of EPA’s proposal and when it is finalized.

We will report back once EPA publishes the formal proposal.