H.R. 8536

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8536 Introduced in House (IH)]

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119th CONGRESS
2d Session
H. R. 8536

To amend the Clean Air Act to reform the Renewable Fuel Standard, and 
for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

April 28, 2026

Mr. Arrington (for himself and Mr. Moran) introduced the following 
bill; which was referred to the Committee on Energy and Commerce

_______________________________________________________________________

A BILL

To amend the Clean Air Act to reform the Renewable Fuel Standard, and 
for other purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Fuel and Strengthen the American 
Refinery Act of 2026'' or the ``Fuel STAR Act of 2026''.

SEC. 2. RENEWABLE FUEL STANDARD REFORMS.

(a) In General.--Section 211(o) of the Clean Air Act (42 U.S.C. 
7545(o)) is amended--
(1) in paragraph (2)(B), by adding at the end the 
following:
``(vi) Maximum changes in applicable 
volumes.--Notwithstanding clauses (iii) through 
(v) and the analyses required under subclauses 
(I) through (VI) of clause (ii), for the 
purpose of making the determinations in clause 
(ii), the Administrator shall ensure that, for 
the first calendar year that begins after the 
date of enactment of this clause and for each 
calendar year thereafter, the applicable volume 
for renewable fuel that is not advanced biofuel 
does not exceed the projected annual domestic 
consumption of ethanol blended fuel projected 
in the most recent Annual Energy Outlook report 
of the Energy Information Administration for 
the applicable year.'';
(2) in paragraph (5)--
(A) in subparagraph (C), by striking ``A credit'' 
and inserting ``Except as provided in subparagraph (F), 
a credit''; and
(B) by adding at the end the following:
``(F) Extended duration of certain credits.--A 
credit generated under this paragraph in calendar year 
2020 through 2022 may be used to show compliance for 
any of the 5 calendar years following the date of the 
enactment of this subparagraph, except that not more 
than 20 percent of the credits used by a person to 
demonstrate compliance with paragraph (2) in a calendar 
year may be credits that were generated in calendar 
year 2020 through 2022.
``(G) Prohibition.--In promulgating regulations 
under paragraph (2)(A) to carry out this paragraph, the 
Administrator may not impose a requirement to use an 
electric credit (commonly referred to as an `e-
RIN').''; and
(3) in paragraph (9)--
(A) in subparagraph (A), by adding at the end the 
following:
``(iii) Applicability to certain small 
refineries.--
``(I) In general.--A small refinery 
described in subclause (III) is 
eligible to receive an exemption from 
compliance with the requirements of 
paragraph (2) with respect to a 
calendar year for the reason of 
disproportionate economic hardship.
``(II) Treatment.--The 
Administrator shall deem any exemption 
under this clause as an extension of an 
exemption under subparagraph (A), and 
the requirements of subparagraphs (B), 
(C), and (D) shall apply in the same 
manner and to the same extent with 
respect to such exemptions as to such 
extensions of exemptions.
``(III) Small refineries 
described.--A small refinery described 
in this subclause is a small refinery--
``(aa) for which the 
average aggregate daily crude 
oil throughput for a calendar 
year (as determined by dividing 
the aggregate throughput for 
the calendar year by the number 
of days in the calendar year) 
does not exceed 10,000 barrels; 
and
``(bb) that began 
production on or after January 
1, 2007.'';
(B) in subparagraph (B)--
(i) in clause (i), by striking ``the 
exemption'' and inserting ``an exemption'';
(ii) in clause (ii), by inserting after 
``and other economic factors.'' ``Beginning on 
date that is 1 year after the date of enactment 
of the Farm, Food, and National Security Act of 
2026, such economic factors shall be the 
following:
``(I) As applicable to small 
refineries under the control of a 
holding company, the cost of credits 
purchased by such holding company to 
demonstrate compliance with paragraph 
(2) calendar year divided by the 
revenue of such holding company over 
the calendar year.
``(II) Whether the costs to a small 
refinery of complying with the 
requirements of paragraph (2) would 
eliminate efficiency gains, as 
described in the study of the 
Department of Energy titled `Small 
Refinery Exemption Study An 
Investigation into Disproportionate 
Economic Hardship' and dated March 
2011.
``(III) Whether the costs to a 
small refinery of complying with such 
requirements are likely to lead to the 
refinery ceasing to operate.
``(IV) Exceptional State regulatory 
environment, as determined by the 
Administrator.
``(V) Whether a small refinery is 
actively building infrastructure to 
blend biofuels, as demonstrated by the 
submission of a plan to the 
Administrator.'';
(iii) in clause (iii)--
(I) by striking ``The 
Administrator'' and inserting the 
following:
``(I) In general.--The 
Administrator''; and
(II) by adding at the end the 
following:
``(II) Failure to respond.--If the 
Administrator does not, during the 90-
day period described in subclause (I), 
provide to the petitioner a description 
of the legal basis pursuant to which 
the Administrator has determined that 
the small refinery that is the subject 
of the petition under clause (i) does 
not qualify for an extension of an 
exemption under subparagraph (A), the 
petition shall be considered 
granted.''; and
(iv) by adding at the end the following:
``(iv) Approval of certain petitions.--
Notwithstanding clause (ii) and subject to 
clause (v), the Administrator shall grant a 
petition submitted under clause (i) by a small 
refinery for an extension of an exemption under 
subparagraph (A) if the Secretary of Energy 
determines that, with respect to the small 
refinery--
``(I) the disproportionate impacts 
index, as described in the report of 
the Office of Policy and International 
Affairs of the Department of Energy 
entitled `Small Refinery Exemption 
Study: An Investigation into 
Disproportionate Economic Hardship' and 
dated March 2011, is greater than or 
equal to 1; or
``(II) the viability index, as 
described in the report described in 
subclause (I), is greater than or equal 
to 1.
``(v) Limitation.--The Administrator may 
not approve a petition submitted under clause 
(i) by a small refinery under the control of a 
holding company if such approval would result 
in a total exempted volume that--
``(I) taken together with any other 
refinery under the control of the 
holding company, exceeds 75,000 barrels 
of oil produced per day or 50 percent 
of the total amount of barrels of oil 
produced per day by such refineries, 
whichever is greater; or
``(II) exceeds the combined total 
capacity for barrels of oil produced 
per day by any small refinery under 
such control.''; and
(C) in subparagraph (C)--
(i) by striking ``If a small'' and 
inserting the following:
``(i) Effect of waiver.--If a small''; and
(ii) by adding at the end the following:
``(ii) Effect of exemption.--If the 
Administrator grants a petition for an 
extension of an exemption under subparagraph 
(A) submitted by a small refinery, the 
Administrator may not reallocate the renewable 
fuel obligation of that small refinery to other 
refineries.''.
(b) Year-Round Sale of E15.--Section 211 of the Clean Air Act (42 
U.S.C. 7545) is further amended--
(1) in subsection (f), by adding at the end the following:
``(6) The Reid vapor pressure limitation applicable under this 
subsection to fuel blends containing gasoline and a percent of 
denatured anhydrous ethanol that exceeds 10 percent and is not more 
than 15 percent shall be the same as any such limitation applicable 
under this subsection to fuel blends containing gasoline and 10 percent 
denatured anhydrous ethanol.''; and
(2) in subsection (h)--
(A) in paragraph (4), by striking ``10 percent'' 
and inserting ``10 to 15 percent''; and
(B) in paragraph (5)(A), by striking ``10 percent'' 
and inserting ``10 to 15 percent''.
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