Company: REX
Filing Date: 2025-12-04
Form Type: 10-Q
Source: 0000930413-25-003566
Chunk: 90

Company: REX AMERICAN RESOURCES Corp
Filing Date: 2025-12-04
Form: 10-Q
Item: Part I, Item 8
Chunk 90
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 SRE petitions
pending from compliance years 2023 - 2025. The total exemptions amount to approximately 2.2 billion gallon credits from compliance
years 2023 - 2025. The EPA is currently working on determining how to possibly reallocate credits exempted for 2023 and later years.
In addition, the EPA laid out its new approach to ruling on SRE petitions. The agency said it would utilize the Department of Energy’s
matrix for determining disproportionate harm unless the EPA’s “consideration of other economic factors, including refinery-specific
information, compels the Agency to depart from that rebuttable presumption.” It also stated if the small refiner has already
demonstrated compliance by retiring RINs it

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would return those RINs.

The EPA has issued RVOs for calendar years
2023-2025. The volumes from conventional biofuels (which includes corn-based ethanol) were 15.0 billion gallons for 2023 through
2025. Additionally, in 2023, the EPA restored 250 million gallons previously waived. In June 2025, the EPA issued proposed total
RVOs for 2026 and 2027 of 15.0 billion gallons of conventional ethanol for each year.

The EPA issued emergency waivers allowing
the sale of E-15 gasoline for the 2025 summer months. This is the fourth consecutive year for these emergency waivers. The EPA
has not granted E-15 the same Reid vapor pressure waiver as E-10, so absent the emergency waivers, E-15 may not be sold in most
states from June 1 to September 15.

The IRA, signed into law on August 16, 2022,
created a new Clean Fuel Production Credit, section 45Z, originally available for years 2025 to 2027. Based
on proposed rulemaking by the United States Department of Treasury, the Clean Fuel Production Credit will be established utilizing a sliding
scale where tax credits may be earned incrementally between $0.02 and $0.20, or $0.10 and $1.00 if prevailing wage requirements are met,
per gallon of non-SAF fuels based on a plant’s GHG reduction below a 50 CI score threshold, with the first two or ten cents earned
upon achieving a CI score below 47.5. The IRA also raises the carbon capture tax credit from $50 per metric ton to $85 per metric ton,
under section 45