MYTHS VS. FACTS

Myth: Small refineries get an unfair competitive advantage from SREs.

Fact: SREs simply prevent disproportionate harm. Small refineries remain capacity-limited, are not price setters, and do not gain market share through exemptions.

There’s a lot of noise out there. Allow us to set the record straight:

Myth: Large companies can keep small refineries open if they choose.

Fact: Parent companies make facility-specific economic decisions. When compliance costs make a refinery unprofitable, it is closed—regardless of company size.

Myth: Eliminating SREs will lower fuel prices.

Fact: Weakening SREs increases the risks of refinery closures, reduces domestic fuel supply, and raises gasoline and diesel prices—especially in inland and rural markets.

Myth: The RFS was designed primarily to subsidize agriculture.

Fact: The RFS was created to enhance U.S. energy security. Using it as an agriculture subsidy undermines that core mission and simply transfers costs to small refiners and consumers.

Myth: SREs undermine energy independence and renewable fuel goals.

Fact: The United States is a leading energy producer and ethanol exporter. Exemptions do not reduce ethanol demand but do protect domestic refining capacity and energy resilience.

Myth: Any renewable volume obligations that are exempted from small refineries should be “reallocated” and absorbed by other refineries.

Fact: The law does not—and should not—authorize the government to shift mandates in the market, picking winners and losers and unduly burdening the latter.