RINs Sink as White House Considers 50% Cut in SRE Reallocation
The main news today is the Reuters report that the White House and EPA are considering a proposed 50% reduction in the reallocation of Small Refinery Exemptions (SREs) - we had warned here that it was bound to happen. Historically, SREs have removed billions of gallons from compliance. A 50% haircut would still leave a large gap: estimates point to as much as 2 billion gallons of blending requirements disappearing in 2026, equivalent to roughly 6.4 million metric tons when adjusted for HVO density. Such a shift would fundamentally reshape RIN demand and compliance dynamics, but it is inevitable that this matter will have to be settled by courts considering the large size of SRE exemptions and the RVO impact on remaining refiners.
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