Why It Matters
Valero Energy Corp. reported $820,000 in third-quarter lobbying spending across seven registrants as it pursued federal policies affecting renewable fuels, energy taxes and liquid motor fuels, including renewable biofuels. The Environmental Protection Agency (EPA) finalized Renewable Fuel Standard (RFS) requirements for 2026 and 2027 in March and proposed additional changes to small-refinery exemption reallocations in October, keeping renewable fuel obligations an active regulatory issue for refiners.
By the Numbers
Bracewell LLP's third-quarter filing for Valero reports $110,000, unchanged from the second quarter and the third quarter of 2025.
Valero's combined reported lobbying spending across all seven registrants in the third quarter totaled $820,000:
- Valero Energy Corp. (in-house): $430,000
- Bracewell LLP: $110,000
- Miller Strategies LLC: $110,000
- Nickles Group LLC: $60,000
- Owen Evans Ingols: $60,000
- Roberti Global LLC: $50,000
- Washington Council Ernst & Young: $0
Valero's reported lobbying spending across the past four quarters totals $3.28 million, according to the cited filing data.
The Bracewell filing lists six lobbyists: Tim Urban; Kyle Spencer; Scott Segal; Josh Zive; Joe Brazauskas, with prior experience on the House Oversight and Government Reform Committee and the House Science, Space and Technology Committee; and Holt Edwards, with prior experience linked to Sen. Cynthia Lummis (R-WY) and the Senate Environment and Public Works Committee. Spencer and Edwards joined the engagement between the fourth quarter of 2025 and the first quarter.
Broader Context
Renewable Fuel Standard
The EPA announced its final 2026 and 2027 RFS rule on March 27, setting required renewable fuel volumes and a 70% reallocation of small-refinery exemptions granted for 2023 through 2025. The rule was published April 1 and generally took effect June 15, with exceptions for certain provisions. The Renewable Fuels Association welcomed the rule, citing EPA's requirement of 15 billion gallons of conventional renewable fuel annually, while the American Petroleum Institute opposed the exemption reallocation, calling it market-distorting and urging legislative reform.
On Oct. 13, EPA proposed revising its small-refinery exemption reallocations after granting more exemptions for 2025 than previously projected. The agency is considering splitting the additional exempted volume equally between the 2026 and 2027 compliance years or allocating it all to 2027. The proposal could also extend the March 31, 2027, compliance reporting deadline. EPA scheduled a public hearing for Nov. 4 and set a Dec. 4 deadline for public comments.
Rep. Adrian Smith (R-NE) introduced H.R. 1346, the Nationwide Consumer and Fuel Retailer Choice Act, on Feb. 13, 2025, addressing the Clean Air Act's ethanol Reid vapor pressure waiver and related Renewable Fuel Standard provisions. The House passed the bill 218-203 on May 13, Roll Call 164, before sending it to the Senate, where it was referred to the Environment and Public Works Committee on May 14. Rep. Jodey Arrington (R-TX) introduced H.R. 8536, the Fuel and Strengthen the American Refinery Act, or Fuel STAR Act, on April 28 to reform the Renewable Fuel Standard. The House referred the bill to the Energy and Commerce Committee.
Energy tax and trade
Rep. Scott Perry (R-PA) introduced H.R. 311, the Restoring Fuel Market Freedom Act of 2025, on Jan. 9, 2025. The bill would repeal multiple federal fuel-related tax credits, including credits for alcohol fuels, biodiesel, sustainable aviation fuel, and clean fuel production. It was referred to the House Ways and Means Committee. Arrington also introduced H.R. 1850, the CRUDE Act, on March 5, 2025. The bill would limit presidential authority to impose export licensing requirements or other restrictions on U.S. crude oil exports and was referred to the House Foreign Affairs Committee.
Rep. Ken Calvert (R-CA) posted Oct. 22 that California policies led to the closure of Valero refineries over the past year and highlighted his introduction of H.R. 9838, the National Security Interstate Pipeline Act, which would expedite approval of interstate oil and natural gas pipelines deemed critical to national security. Calvert introduced the legislation July 23.
The Bottom Line
EPA's proposed revisions to small-refinery exemption reallocations represent the next major regulatory decision affecting renewable fuel obligations, with a Nov. 4 public hearing and Dec. 4 comment deadline. H.R. 1346, which addresses the Clean Air Act's ethanol Reid vapor pressure waiver and related Renewable Fuel Standard provisions, passed the House 218-203 on May 13 and was referred to the Senate Environment and Public Works Committee on May 14, its latest recorded action.
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