Fuel and Petrochemical Industry Pushes Environmental and Tax Agenda

Why It Matters

The fuel and petrochemical industry faces a complicated regulatory environment, with the EPA finalizing renewable fuel volume requirements, reporting rules taking effect on PFAS (synthetic "forever chemicals"), and California vehicle emissions waivers in active litigation.

American Fuel & Petrochemical Manufacturers (AFPM) disclosed $1.16 million in first-quarter lobbying activity, covering a wide legislative agenda spanning environmental permitting, clean fuel tax credits, pipeline safety, and cybersecurity.

AFPM is seeking to shape both the regulatory rollback underway at federal agencies and the legislative vehicles moving through Congress that could lock in or reverse those changes. The group is focused on air permitting reform, fuel economy standards, and the 45Z clean fuel production tax credit.

By the Numbers

This is one of several first quarter 2026 lobbying disclosure filings that AFPM submitted. Alongside its $1.16 million in-house report, the group also filed through Capitol Tax Partners LLP ($80,000), Taft, Stettinius & Hollister LLP ($50,000), Federal Street Strategies LLC ($50,000), and CGCN Group LLC ($40,000), bringing total disclosed first quarter spending across all registrants to approximately $1.38 million.

That's down from fourth quarter 2025, when AFPM's in-house filing alone reported $1.6 million, and from third quarter 2025, when in-house spending peaked at $1.65 million. The in-house team's spending has trended down from those highs, though the external firm roster has remained consistent.

The six-person in-house lobbying team includes Chet Thompson, Geoff Moody, Cory Toth, Aaron Ringel, Bill Birsic Jr., and Hannah Sztorc. Several bring congressional experience. Sztorc previously worked for Rep. Henry Cuellar (D-TX) and Sen. Joe Manchin (I-WV); Ringel served as legislative director for Rep. Richard Hudson (R-NC) and Rep. Mike Pompeo (R-KS); Toth was a senior adviser to Rep. David McKinley (R-WV); and Birsic worked as a legislative assistant for Sen. Roger Marshall (R-KS).

Externally, Taft, Stettinius & Hollister continues to handle infrastructure, cybersecurity, pipelines, and rail issues. Capitol Tax Partners covers energy-related tax issues. Federal Street Strategies focuses on the Renewable Fuel Standard (RFS), electric vehicle mandates, and the Clean Air Act.

The Agenda

AFPM's first quarter agenda covers seven issue areas. On fuel and energy, the group is lobbying on the EPA Renewable Fuel Standard (RFS) Set 2 Proposed Rule, sustainable aviation fuel, vehicle emissions, fuel prices and petroleum markets, and California Clean Air Act waivers. Specific legislation includes H.R. 161 (New Source Review Permitting Improvement Act), H.R. 3109 (REFINER Act), H.R. 3699 (Energy Choice Act), and H.R. 5636 / S. 2742 (Protect Consumers from Reallocation Costs Act of 2025).

On environmental regulation, the group is tracking plastic waste and advanced recycling; PFAS; Chemical Facility Anti-Terrorism Standards (CFATS) reauthorization; Toxic Substances Control Act (TSCA) reform; the Endangered Species Act; and the HON Rule, which is the Hazardous Organic National Emission Standards for Hazardous Air Pollutants (NESHAP). Several air permitting bills are also targeted, including H.R. 3898 (PERMIT Act), H.R. 6398 (RED Tape Act), H.R. 6373 (Air Permitting Improvements to Protect National Security Act), H.R. 4218 (CLEAR Act), and H.R. 6409 (FENCES Act).

On tax, AFPM is lobbying on IRA implementation and the 45Z clean fuel production tax credit. On transportation, the group is focused on surface transportation reauthorization, vehicle emissions, Corporate Average Fuel Economy (CAFE) standards, and the EPA RFS Set 2 rule. The group also disclosed lobbying on fiscal year 2026 appropriations, trade and tariffs, counter-drone legislation, and the Cybersecurity and Infrastructure Security Agency (CISA) reauthorization.

Broader Context

Several of AFPM's core issues are in active legislative or regulatory motion. The EPA finalized renewable fuel volume requirements for 2026 and 2027, including a 70 percent reallocation of small refinery exemptions, a provision directly affecting AFPM member refiners. The 45Z clean fuel production credit took effect January 1, 2025, with proposed implementing regulations issued in early 2026.

On California waivers, Congress rescinded EPA authorizations for the Advanced Clean Cars II rule, the Advanced Clean Trucks rule, and the Omnibus Low NOX rule. Litigation over those rescissions continues. AFPM has lobbied on California waiver issues across multiple quarters.

PFAS compliance timelines are also tightening. The PFAS reporting period under TSCA Section 8(a)(7) opened April 13, 2026, running through October 2026, directly affecting petrochemical manufacturers. EPA has additional PFAS-related rule-making efforts targeted for mid-2026.

On Capitol Hill, Sen. Mike Lee (R-UT) introduced the Protect Consumers from Reallocation Costs Act in September 2025, citing AFPM by name. In December 2025, Lee led a Senate letter to EPA urging the agency not to shift compliance costs onto refineries. Rep. Gary Palmer (R-AL) introduced H.R. 6373 in December 2025. Rep. Russ Fulcher (R-ID) highlighted the REFINER Act in a December 2025 post. Sen. Roger Marshall (R-KS) praised Treasury's 45Z guidance in February 2026.

A Senate Commerce Committee hearing in April 2026 examined the impact of environmental laws on critical mineral supply chains and economic growth, touching on permitting timelines, which is a central AFPM concern. A separate Senate Finance Committee hearing the same day addressed trade policy, including LNG exports and ethanol market access.

Competitive Landscape

HF Sinclair Corp. and Labor & Energy Alliance Inc. are also lobbying on the Protect Consumers from Reallocation Costs Act. Williams Companies and Plains All American are lobbying on the PERMIT Act. TSMC Arizona is active on H.R. 6373. On the Energy Choice Act, Washington Gas & Light, American Gas Association, and American Chemistry Council are all engaged.

The Bottom Line

AFPM's first-quarter 2026 in-house spending of $1.16 million is lower than the prior two quarters but consistent with the group's baseline activity level. Its agenda covers a dense set of regulatory and legislative developments, with permitting reform and clean fuel tax policy among the most active areas.

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