diff --git a/.gitmodules b/.gitmodules
index 1f6da08484..225f2f75ac 100644
--- a/.gitmodules
+++ b/.gitmodules
@@ -28,7 +28,7 @@
 [submodule "fates"]
 path = src/fates
 url = https://github.com/NGEET/fates
-fxtag = sci.1.78.3_api.36.1.0
+fxtag = sci.1.79.3_api.37.0.0
 fxrequired = AlwaysRequired
 # Standard Fork to compare to with "git fleximod test" to ensure personal forks aren't committed
 fxDONOTUSEurl = https://github.com/NCAR/fates-release
diff --git a/cime_config/testdefs/ExpectedTestFails.xml b/cime_config/testdefs/ExpectedTestFails.xml
index 775ff2c281..007468cecc 100644
--- a/cime_config/testdefs/ExpectedTestFails.xml
+++ b/cime_config/testdefs/ExpectedTestFails.xml
@@ -180,6 +180,10 @@
       <status>FAIL</status>
       <issue>#2454</issue>
     </phase>
+    <phase name="COMPARE_base_rest">
+      <status>FAIL</status>
+      <issue>#2325</issue>
+    </phase>
   </test>
 
   <test name="SMS_Lm3_D_Mmpi-serial.1x1_brazil.I2000Clm50FatesCruRsGs.izumi_intel.clm-FatesColdHydro">
@@ -188,6 +192,13 @@
       <issue>#2454</issue>
     </phase>
   </test>
+  
+  <test name="ERS_Ld60.f45_f45_mg37.I2000Clm50FatesCruRsGs.derecho_intel.clm-FatesColdST3">
+    <phase name="RUN">
+      <status>FAIL</status>
+      <issue>#2867</issue>
+    </phase>
+  </test>
 
   <test name="SMS_Ld10_D_Mmpi-serial.CLM_USRDAT.I1PtClm60Fates.izumi_nag.clm-FatesFireLightningPopDens--clm-NEON-FATES-NIWO">
     <phase name="SHAREDLIB_BUILD">
@@ -270,21 +281,22 @@
     </phase>
   </test>
 
-  <test name="ERS_D_Ld15.f45_f45_mg37.I2000Clm50FatesRs.izumi_nag.clm-FatesColdTwoStream">
+  <test name="ERS_D_Ld15.f45_f45_mg37.I2000Clm50FatesRs.derecho_gnu.clm-FatesColdTwoStreamNoCompFixedBioGeo">
     <phase name="COMPARE_base_rest">
       <status>FAIL</status>
       <issue>#2325</issue>
     </phase>
   </test>
+  
+  <!-- izumi nag failures -->
 
-  <test name="ERS_D_Ld15.f45_f45_mg37.I2000Clm50FatesRs.derecho_gnu.clm-FatesColdTwoStreamNoCompFixedBioGeo">
-    <phase name="COMPARE_base_rest">
+  <test name="SMS_D.f10_f10_mg37.I1850Clm60BgcCrop.izumi_nag.clm-ciso_soil_matrixcn_only">
+    <phase name="RUN">
       <status>FAIL</status>
-      <issue>#2325</issue>
+      <issue>#2861</issue>
     </phase>
   </test>
   
-  <!-- izumi nag failures -->
   <test name="ERS_D_Ld5_Mmpi-serial.1x1_vancouverCAN.I1PtClm50SpRs.izumi_nag.clm-CLM1PTStartDate">
     <phase name="RUN">
       <status>FAIL</status>
@@ -334,13 +346,6 @@
     </phase>
   </test>
 
-  <test name="ERS_D_Mmpi-serial_Ld5.1x1_brazil.I2000Clm50FatesCruRsGs.izumi_nag.clm-FatesCold">
-    <phase name="RUN">
-      <status>FAIL</status>
-      <issue>#2861</issue>
-    </phase>
-  </test>
-
   <test name="SMS_Lm3_D_Mmpi-serial.1x1_brazil.I2000Clm50FatesCruRsGs.izumi_nag.clm-FatesColdHydro">
     <phase name="RUN">
       <status>FAIL</status>
@@ -361,6 +366,22 @@
       <issue>#2810</issue>
     </phase>
   </test>
+  
+  <test name="ERS_D_Mmpi-serial_Ld5.1x1_brazil.I2000Clm50FatesCruRsGs.izumi_nag.clm-FatesCold">
+    <phase name="RUN">
+      <status>FAIL</status>
+      <issue>#2861</issue>
+    </phase>
+  </test>
+  
+    
+  <test name="SMS_Ld10_D_Mmpi-serial.CLM_USRDAT.I1PtClm60Fates.izumi_nag.clm-FatesPRISM--clm-NEON-FATES-YELLO">
+    <phase name="RUN">
+      <status>FAIL</status>
+      <issue>#2861</issue>
+    </phase>
+  </test>
+
 
   <test name="ERS_D_Ld30.f45_f45_mg37.I2000Clm50FatesCruRsGs.izumi_nag.clm-FatesColdLandUse">
     <phase name="SHAREDLIB_BUILD">
diff --git a/cime_config/testdefs/testlist_clm.xml b/cime_config/testdefs/testlist_clm.xml
index d5a8f3077b..b118c863b1 100644
--- a/cime_config/testdefs/testlist_clm.xml
+++ b/cime_config/testdefs/testlist_clm.xml
@@ -2679,7 +2679,7 @@
       <option name="comment"  >5x5_amazon grid with FATES and latest CLM</option>
     </options>
   </test>
-  <test name="ERS_D_Ld15" grid="f10_f10_mg37" compset="I2000Clm50FatesRs" testmods="clm/FatesColdSeedDisp">
+  <test name="ERS_D_Ld15" grid="5x5_amazon" compset="I2000Clm50FatesRs" testmods="clm/FatesColdSeedDisp">
     <machines>
       <machine name="derecho" compiler="gnu" category="fates"/>
     </machines>
@@ -2688,7 +2688,7 @@
       <option name="comment"  >This test should be converted to an ERP test once the PEM version of this test is passing COMPARE_base_modpes. Also change to 5x5_amazon once ccs_config updated to allow it</option>
     </options>
   </test>
-  <test name="PEM_D_Ld15" grid="f10_f10_mg37" compset="I2000Clm50FatesRs" testmods="clm/FatesColdSeedDisp">
+  <test name="PEM_D_Ld15" grid="5x5_amazon" compset="I2000Clm50FatesRs" testmods="clm/FatesColdSeedDisp">
     <machines>
       <machine name="derecho" compiler="gnu" category="fates"/>
     </machines>
diff --git a/cime_config/testdefs/testmods_dirs/clm/FatesColdST3/user_nl_clm b/cime_config/testdefs/testmods_dirs/clm/FatesColdST3/user_nl_clm
index eca76c4b9c..860656e8d8 100644
--- a/cime_config/testdefs/testmods_dirs/clm/FatesColdST3/user_nl_clm
+++ b/cime_config/testdefs/testmods_dirs/clm/FatesColdST3/user_nl_clm
@@ -1 +1,2 @@
 use_fates_ed_st3= .true.
+hist_fexcl1 = 'FATES_ERROR_EL'
diff --git a/doc/ChangeLog b/doc/ChangeLog
index c08a55bbd4..5a2a3c472e 100644
--- a/doc/ChangeLog
+++ b/doc/ChangeLog
@@ -1,4 +1,62 @@
 ===============================================================
+Tag name: ctsm5.3.012
+Originator(s): afoster (Adrianna Foster,UCAR/TSS,303-497-1728)
+Date: Wed 13 Nov 2024 09:53:51 AM MST
+One-line Summary: update fates tag
+
+Purpose and description of changes
+----------------------------------
+
+Updates FATES tag to latest fates main (sci.1.79.3_api.37.0.0), and updates API to go
+along with latest FATES update to refactor it's fire equations
+
+
+Significant changes to scientifically-supported configurations
+--------------------------------------------------------------
+
+
+[ ] clm6_0
+
+[ ] clm5_1
+
+[ ] clm5_0
+
+[ ] ctsm5_0-nwp
+
+[ ] clm4_5
+
+
+
+
+
+
+Testing summary:
+----------------
+
+  regular tests (aux_clm: https://github.com/ESCOMP/CTSM/wiki/System-Testing-Guide#pre-merge-system-testing):
+
+    derecho ----- OK
+    izumi ------- OK
+
+  fates tests:
+    derecho ----- OK
+    izumi ------- OK
+
+
+Answer changes
+--------------
+
+Changes answers relative to baseline:
+
+Round-off differences for FATES compsets where fire is active.
+NLCOMP differences for some FATES compsets
+
+
+Pull Requests that document the changes (include PR ids):
+- ESCOMP/CTSM#2782: Fates fuel refactor (https://github.com/ESCOMP/CTSM/pull/2782)
+
+===============================================================
+===============================================================
 Tag name: ctsm5.3.011
 Originator(s): samrabin (Sam Rabin, UCAR/TSS, samrabin@ucar.edu)
 Date: Mon Nov 11 17:55:57 MST 2024
diff --git a/doc/ChangeSum b/doc/ChangeSum
index daffdab145..87d5709a68 100644
--- a/doc/ChangeSum
+++ b/doc/ChangeSum
@@ -1,5 +1,6 @@
 Tag                   Who      Date  Summary
 ============================================================================================================================
+       ctsm5.3.012  afoster 11/13/2024 update fates tag
        ctsm5.3.011 samrabin 11/11/2024 Improve handling of cold-start finidat
        ctsm5.3.010  afoster 11/09/2024 Merge b4b-dev
        ctsm5.3.009 samrabin 10/15/2024 Reduce outputs from matrixcnOn tests
diff --git a/src/fates b/src/fates
index 825579d0b4..e3e7d2cd86 160000
--- a/src/fates
+++ b/src/fates
@@ -1 +1 @@
-Subproject commit 825579d0b406fe99344591b5ed8356e5c7aeebec
+Subproject commit e3e7d2cd86a66f8ca0e8f6dc4a823246a2bdb95b
diff --git a/src/main/histFileMod.F90 b/src/main/histFileMod.F90
index 14793441ae..381e1f1170 100644
--- a/src/main/histFileMod.F90
+++ b/src/main/histFileMod.F90
@@ -28,7 +28,7 @@ module histFileMod
   use FatesInterfaceTypesMod , only : nlevheight
   use FatesInterfaceTypesMod , only : nlevdamage
   use FatesConstantsMod      , only : n_landuse_cats
-  use FatesLitterMod         , only : nfsc
+  use FatesFuelClassesMod    , only : num_fuel_classes
   use FatesLitterMod         , only : ncwd
   use PRTGenericMod          , only : num_elements_fates  => num_elements
   use FatesInterfaceTypesMod , only : numpft_fates => numpft
@@ -2506,7 +2506,7 @@ subroutine htape_create (t, histrest)
        call ncd_defdim(lnfid, 'fates_levpft', numpft_fates, dimid)
        call ncd_defdim(lnfid, 'fates_levage', nlevage, dimid)
        call ncd_defdim(lnfid, 'fates_levheight', nlevheight, dimid)
-       call ncd_defdim(lnfid, 'fates_levfuel', nfsc, dimid)
+       call ncd_defdim(lnfid, 'fates_levfuel', num_fuel_classes, dimid)
        call ncd_defdim(lnfid, 'fates_levcwdsc', ncwd, dimid)
        call ncd_defdim(lnfid, 'fates_levscpf', nlevsclass*numpft_fates, dimid)
        call ncd_defdim(lnfid, 'fates_levcapf', nlevcoage*numpft_fates, dimid)
@@ -2521,7 +2521,7 @@ subroutine htape_create (t, histrest)
        call ncd_defdim(lnfid, 'fates_levelpft', num_elements_fates * numpft_fates, dimid)
        call ncd_defdim(lnfid, 'fates_levelcwd', num_elements_fates * ncwd, dimid)
        call ncd_defdim(lnfid, 'fates_levelage', num_elements_fates * nlevage, dimid)
-       call ncd_defdim(lnfid, 'fates_levagefuel', nlevage * nfsc, dimid)
+       call ncd_defdim(lnfid, 'fates_levagefuel', nlevage * num_fuel_classes, dimid)
        call ncd_defdim(lnfid, 'fates_levclscpf', nclmax*nlevsclass*numpft_fates, dimid)
        call ncd_defdim(lnfid, 'fates_levlanduse', n_landuse_cats, dimid)
        call ncd_defdim(lnfid, 'fates_levlulu', n_landuse_cats * n_landuse_cats, dimid)
@@ -5597,7 +5597,7 @@ subroutine hist_addfld2d (fname, type2d, units, avgflag, long_name, type1d_out,
     case ('fates_levheight')
        num2d = nlevheight
     case ('fates_levfuel')
-       num2d = nfsc
+       num2d = num_fuel_classes
     case ('fates_levcwdsc')
        num2d = ncwd
     case ('fates_levscpf')
@@ -5637,7 +5637,7 @@ subroutine hist_addfld2d (fname, type2d, units, avgflag, long_name, type1d_out,
     case ('fates_levelage')
        num2d = num_elements_fates*nlevage
     case ('fates_levagefuel')
-       num2d = nlevage*nfsc
+       num2d = nlevage*num_fuel_classes
     case('fates_levclscpf')
        num2d = nclmax * nclmax * numpft_fates
     case ('fates_levlanduse')
diff --git a/src/utils/clmfates_interfaceMod.F90 b/src/utils/clmfates_interfaceMod.F90
index cff7679e9d..269189d1b7 100644
--- a/src/utils/clmfates_interfaceMod.F90
+++ b/src/utils/clmfates_interfaceMod.F90
@@ -3622,7 +3622,7 @@ subroutine hlm_bounds_to_fates_bounds(hlm, fates)
    use FatesInterfaceTypesMod, only : nlevsclass, nlevage, nlevcoage
    use FatesInterfaceTypesMod, only : nlevheight
    use FatesInterfaceTypesMod, only : nlevdamage
-   use FatesLitterMod,         only : nfsc
+   use FatesFuelClassesMod,    only : num_fuel_classes
    use FatesLitterMod,         only : ncwd
    use EDParamsMod,            only : nlevleaf, nclmax
    use FatesInterfaceTypesMod, only : numpft_fates => numpft
@@ -3674,7 +3674,7 @@ subroutine hlm_bounds_to_fates_bounds(hlm, fates)
    fates%sizeagepft_class_end   = nlevsclass * nlevage * numpft_fates
 
    fates%fuel_begin = 1
-   fates%fuel_end = nfsc
+   fates%fuel_end = num_fuel_classes
 
    fates%cwdsc_begin = 1
    fates%cwdsc_end = ncwd
@@ -3701,7 +3701,7 @@ subroutine hlm_bounds_to_fates_bounds(hlm, fates)
    fates%elage_end   = num_elements * nlevage
 
    fates%agefuel_begin = 1
-   fates%agefuel_end   = nlevage * nfsc
+   fates%agefuel_end   = nlevage * num_fuel_classes
 
    fates%cdpf_begin = 1
    fates%cdpf_end = nlevdamage * numpft_fates * nlevsclass