By Jamie Martin
EPA has moved to resolve uncertainty around the Renewable Fuel Standard by acting on 175 Small Refinery Exemption petitions spanning 2016–2024. The decisions include 63 full exemptions, 77 partial exemptions, 28 denials, and 7 ineligible petitions. EPA says each petition was reviewed with DOE input and evaluated under the Clean Air Act and relevant case law.
The agency reaffirmed a partial-relief policy from its 2020 rulemaking: when a small refinery shows partial hardship, EPA can grant a 50% exemption. This policy replaces a stricter approach linked to DOE’s 2011 study and is intended to reflect real-world differences among facilities without undercutting national blending goals.
“The EPA inherited a messy situation and we appreciate the agency’s commitment to ending the years-long SRE litigation and restoring stability to the RFS. NOPA is confident the agency understands that strong RVOs will have profoundly positive impacts on U.S. farmers and rural America. We urge the EPA to build on this progress and quickly finalize the RVOs in a way that delivers these positive impacts, by finalizing a re-allocation policy that fully accounts for gallons lost due to SREs in 2023-2025 and any projected SREs for future years, expanding volumes for the biomass-based diesel category to at least 5.25 billion gallons and ensuring domestic feedstocks and fuels are prioritized. These measures are essential to ensuring the program strengthens domestic markets and keeps investment and jobs in rural America,” said Devin Mogler, President and CEO, National Oilseed Processors Association (NOPA).
EPA also restated that RINs have a two-year life. Because 2022 and earlier RINs cannot be used for 2024 or future compliance, returning previously retired RINs for past years should not reduce current or forward biofuel demand.
Next, EPA plans to send a draft supplemental proposal to OMB covering reallocation of exempted volumes for 2023 and later. It does not plan to reallocate volumes for 2016–2022. EPA will also share how it intends to project SREs when setting the 2026 and 2027 percentage standards so that the intended renewable fuel volumes are achieved.
Stakeholders emphasized certainty. Oilseed processors welcomed steps to end years of litigation and called for strong, fully reallocated volumes and expanded biomass-based diesel targets. Growth Energy argued that every exempt gallon should be reallocated to protect promised market volumes. The Renewable Fuels Association supported a minimally disruptive approach but stressed full reallocation for 2023–2024. Clean Fuels Alliance warned that refunding retired RINs must not weaken markets for biodiesel, renewable diesel, SAF, or farm feedstocks as harvest planning advances.
For readers, the message is clear: EPA aims to balance refinery hardship with stable, growing demand for homegrown fuels and dependable markets for American agriculture.
Photo Credit: environment-protection-agency
Categories: National