Protect Consumers from Reallocation Costs Act of 2025
- Bill Number
- H.R. 5636
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Energy
- Status
- Introduced
- Latest Action
- 2025-09-30: Referred to the House Committee on Energy and Commerce.
- Last Updated
- 2026-05-13T08:06:16Z
AI-Generated Summary
Purpose
The "Protect Consumers from Reallocation Costs Act of 2025" (H.R. 5636) aims to prevent the U.S. Environmental Protection Agency (EPA) from redistributing renewable fuel blending requirements from small refineries that receive exemptions under the Renewable Fuel Standard (RFS). The RFS is a federal program mandating that a certain volume of renewable fuels, like ethanol, be blended into gasoline and diesel to reduce reliance on fossil fuels and promote cleaner energy.
Key Provisions
- Prohibition on Reallocation: Adds a new subsection (E) to Section 211(o)(9) of the Clean Air Act, barring the EPA Administrator from reallocating any renewable fuel obligations assigned to small refineries that have received an extension of their RFS exemption. Small refineries are typically those processing fewer than 75,000 barrels of crude oil per day.
- Inclusion of Exempted Volumes: When calculating a person's overall RFS obligations for a given year, the EPA must count the gasoline or diesel produced by an exempt small refinery as part of the total U.S. fuel production or imports, ensuring these volumes are not shifted to other parties.
Significant Changes to Existing Law
- Under current law, small refineries can apply for temporary exemptions from RFS blending requirements due to economic hardship, and these can be extended. If exempted, their unfulfilled obligations could previously be reassigned to other refiners or fuel producers, increasing costs for those parties.
- This bill eliminates that reallocation process, meaning exempt small refineries' volumes stay "out of the pool" for redistribution, altering how the EPA enforces annual RFS targets without forcing others to cover the shortfall.
Potential Impacts
- On Government Agencies: The EPA will need to adjust its annual rulemaking for RFS volumes, potentially simplifying administration but complicating efforts to meet national renewable fuel goals, as exempted volumes won't be offset elsewhere.
- On Citizens: Could help keep fuel prices lower by shielding small refineries from added compliance costs, which might otherwise pass through to consumers at the pump. However, it may slow progress toward reducing greenhouse gas emissions from transportation fuels.
- On International Relations: Minimal direct impact, though it could indirectly affect U.S. trade in biofuels by influencing domestic supply and demand for renewable fuels sourced globally.
Main Stakeholders Affected
- Small Refineries: Primary beneficiaries, as they gain permanent relief from reallocation burdens, protecting their operations from higher blending costs.
- Larger Refiners and Fuel Importers: Potentially harmed, as they can no longer avoid absorbing exempted volumes, which could raise their compliance expenses.
- Renewable Fuel Producers (e.g., ethanol and biodiesel makers): May face reduced market demand if overall blending requirements aren't fully met due to un-reallocated exemptions.
- Consumers and Drivers: Indirectly affected through potential stabilization or reduction in gasoline/diesel prices, balanced against environmental goals.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens protections for small refineries under the Clean Air Act but may invite challenges from renewable industry groups arguing it undermines the RFS's statutory mandate to increase biofuel use, potentially leading to litigation over EPA's implementation authority.
- Constitutional: No direct constitutional issues, as it operates within Congress's commerce clause powers to regulate energy and environmental policy.
- Political: Highlights tensions in U.S. energy policy between supporting domestic oil refining (especially in rural or energy-dependent states) and advancing renewable energy transitions; could spark debate in Congress over balancing economic relief for small businesses with climate objectives.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (18)
Rep. Crenshaw, Dan [R-TX-2], Rep. Perry, Scott [R-PA-10], Rep. Joyce, John [R-PA-13], Rep. Hern, Kevin [R-OK-1], Rep. Pfluger, August [R-TX-11], Rep. Norcross, Donald [D-NJ-1], Rep. Roy, Chip [R-TX-21], Rep. Hageman, Harriet M. [R-WY-At Large], Rep. Moore, Barry [R-AL-1], Rep. Williams, Roger [R-TX-25], Rep. Moran, Nathaniel [R-TX-1], Rep. Gill, Brandon [R-TX-26], Rep. Goldman, Craig A. [R-TX-12], Rep. Bice, Stephanie I. [R-OK-5], Rep. Fulcher, Russ [R-ID-1], Rep. Ellzey, Jake [R-TX-6], Rep. Van Duyne, Beth [R-TX-24], Rep. Moore, Blake D. [R-UT-1]
Recent Actions
- 2025-09-30: Referred to the House Committee on Energy and Commerce.
- 2025-09-30: Introduced in House
- 2025-09-30: Introduced in House
Bill Versions
- Protect Consumers from Reallocation Costs Act of 2025 — issued 2025-09-30 — PDF (2 pages)