Protect Consumers from Reallocation Costs Act of 2025
Summary
The "Protect Consumers from Reallocation Costs Act of 2025" aims to amend the Clean Air Act by prohibiting the reallocation of renewable fuel obligations from small refineries that have received exemptions under the Renewable Fuel Standard (RFS). This means that the EPA would not be able to redistribute the volume obligations of exempted small refineries to other obligated parties.
The bill intends to ensure that small refineries retain their exemptions without shifting the burden of their renewable fuel obligations to other refineries. It also stipulates that the gasoline or diesel refined by these exempted small refineries should be included in the total volume when determining renewable fuel obligations for a person.
Ultimately, the act seeks to protect consumers from potential cost increases associated with the reallocation of these obligations.
Expected Effects
The primary effect of this bill would be to prevent the EPA from reallocating renewable fuel obligations previously held by small refineries that have been granted exemptions. This would likely reduce the compliance burden on larger refineries and other obligated parties who would otherwise have to absorb these reallocated volumes.
Small refineries receiving exemptions would continue to operate without the added cost of renewable fuel standards compliance. This could potentially stabilize or lower fuel prices for consumers in regions served by these refineries.
However, it may also reduce the overall demand for renewable fuels, potentially impacting the renewable fuel industry.
Potential Benefits
- Potentially stabilizes or lowers fuel prices for consumers in regions served by small refineries.
- Reduces the compliance burden on larger refineries and other obligated parties.
- Provides regulatory certainty for small refineries that have received exemptions.
- May encourage continued operation of small refineries, preserving jobs in those communities.
- Could simplify the administration of the Renewable Fuel Standard by eliminating the reallocation process.
Most Benefited Areas:
Potential Disadvantages
- May reduce the overall demand for renewable fuels, hindering the growth of the renewable fuel industry.
- Could disproportionately benefit small refineries at the expense of larger refineries and renewable fuel producers.
- Potentially weakens the overall effectiveness of the Renewable Fuel Standard in achieving its goals.
- May face opposition from environmental groups and renewable fuel advocates.
- Could lead to legal challenges based on fairness and equity concerns.
Most Disadvantaged Areas:
Constitutional Alignment
The bill amends Section 211(o)(9) of the Clean Air Act, which was established under the authority granted to Congress to regulate interstate commerce (Article I, Section 8). The Constitution grants Congress the power to enact laws necessary and proper for carrying out its enumerated powers. The bill's alignment with the Constitution hinges on whether the amendments to the Clean Air Act are considered a valid exercise of congressional authority over interstate commerce and whether they infringe upon any other constitutional rights or protections.
There is no apparent violation of individual rights or freedoms as defined in the Bill of Rights. The act primarily deals with economic regulation related to fuel standards.
However, the specific application and enforcement of the amended Clean Air Act could be subject to judicial review to ensure it does not exceed the scope of congressional authority or violate any other constitutional provisions.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).