Protect Consumers from Reallocation Costs Act of 2025
Summary
H.R. 5636, the "Protect Consumers from Reallocation Costs Act of 2025," amends the Clean Air Act concerning the Renewable Fuel Standard (RFS). The bill aims to prevent the Environmental Protection Agency (EPA) from reallocating renewable fuel obligations of small refineries that have received exemptions. This means that the volume requirements waived for these refineries would not be shifted to other obligated parties.
Expected Effects
If enacted, this bill would change how the EPA administers the RFS program. It would prevent the EPA from redistributing the burden of renewable fuel mandates when small refineries are granted exemptions. This could potentially impact the overall demand for renewable fuels and the compliance costs for larger refineries.
Potential Benefits
- Could provide financial relief to larger refineries by preventing the reallocation of waived obligations.
- May lead to more predictable compliance costs for obligated parties under the RFS.
- Could stabilize the market for renewable identification numbers (RINs).
- Could simplify the administrative burden on the EPA related to RFS compliance.
- May lower consumer fuel prices by reducing refinery compliance costs.
Most Benefited Areas:
Potential Disadvantages
- May reduce the overall demand for renewable fuels, potentially hindering the goals of the RFS.
- Could negatively impact farmers and biofuel producers who rely on the RFS to create demand for their products.
- May disproportionately benefit small refineries at the expense of larger refineries and renewable fuel producers.
- Could lead to increased emissions if less renewable fuel is blended into the fuel supply.
- May face opposition from environmental groups and renewable fuel advocates.
Most Disadvantaged Areas:
Constitutional Alignment
The bill amends Section 211(o)(9) of the Clean Air Act, which is within the scope of Congress's power to regulate interstate commerce (Article I, Section 8). The bill does not appear to infringe upon any specific constitutional rights or limitations. The constitutionality of the original Clean Air Act and its amendments has been upheld by the Supreme Court.
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).