Company: REX
Filing Date: 2025-09-02
Form Type: 10-Q
Source: 0000930413-25-002856
Chunk: 92

Company: REX AMERICAN RESOURCES Corp
Filing Date: 2025-09-02
Form: 10-Q
Item: Part I, Item 8
Chunk 92
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denial of 26 SREs. On August 22, 2025, the EPA ruled on much of the backlog of SREs, with 63 full exemptions, 77 partial
exemptions of 50%, 28 denials and 7 ruled as ineligible. These and additional SREs could lead to decreased RIN values and
ethanol pricing. As of August 22, 2025, there were 13 SRE petitions pending from compliance years 2021 and 2025. The total
exemptions amount to approximately 5.3 billion credits. The EPA is currently working on determining how to reallocate credits
exempted for 2023 and later years, which amount to 1.4 billion credits. 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 would return those RINs.

30

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 has issued emergency waivers for
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 credits may be earned in ten-cent increments