S. 2742: Protect Consumers from Reallocation Costs Act of 2025

This bill, known as the Protect Consumers from Reallocation Costs Act of 2025, aims to amend the Clean Air Act specifically regarding small refineries and their obligations under the Renewable Fuel Standard (RFS). Here are the main points of the bill:

Key Provisions of the Bill

• Prohibition on Reallocation of Obligated Volumes:
  • The bill prohibits the Environmental Protection Agency (EPA) from reallocating renewable fuel obligations that apply to small refineries that have received an extension of exemption under existing rules. This means that if a small refinery is exempt from some obligations, its renewable fuel obligations cannot be transferred to other companies or refineries.
• Inclusion of Small Refinery Volumes:
  • The bill requires that when calculating the renewable fuel obligations for a company in any calendar year, the gasoline or diesel produced by a small refinery owned by that company must be counted in the total volume produced or imported. This inclusion is aimed at ensuring that small refineries are not disadvantaged in the obligation calculations.

Context of the Bill

The Renewable Fuel Standard (RFS) is a program that mandates the blending of renewable fuels—like ethanol or biodiesel—into the fuel supply. Small refineries, which often have a different operational scale compared to larger refineries, have faced challenges in meeting these requirements. The bill is intended to support small refineries by ensuring that their obligations are not reallocated and that their production is fully accounted for in the assessing of obligations.

Impact on Small Refineries

This legislation primarily focuses on small refineries, providing them with more predictable regulatory conditions. By preventing the reallocation of obligations, the bill may offer these refineries a degree of financial stability, as they will not be penalized with transferred obligations to other entities.

Overall Objective

The overall objective of the Protect Consumers from Reallocation Costs Act of 2025 is to protect small refineries from potential reassignment of their renewable fuel obligations, thereby supporting their operational viability and contributing to the stability of the fuel market.

Relevant Companies

• None found