On Friday, EPA announced its decision denying 26 petitions seeking small refinery exemptions (SREs) from the Renewable Fuel Standard (RFS) program for one or more of the compliance years between 2016 and 2023.
Consistent with the April and July 2022 Denials of Petitions for RFS Small Refinery Exemptions, the action announced today applies EPA’s current interpretation of the Clean Air Act SRE provisions, consistent with a U.S. Court of Appeals for the Tenth Circuit holding in Renewable Fuels Association et al. v. EPA. The Tenth Circuit held that SREs may only be granted when a small refinery’s hardship is caused by compliance with the RFS program. After reviewing more than a decade of RFS market data and confidential information submitted by petitioning small refineries, EPA concluded that none of the 26 SRE petitions demonstrated disproportionate economic hardship caused by compliance with the RFS program.
Renewable Fuels Association President and CEO Geoff Cooper thanked the Biden Administration for keeping its promises to restore integrity and certainty to the RFS program. “Under their leadership, the RFS is finally working as intended to drive increased production and use of low-carbon renewable fuels. Today’s action is consistent with the Tenth Circuit Court’s landmark decision and honors the administration’s longstanding commitment to implementing the RFS in a way that is fair, transparent, and focused on growth. As a result of today’s announcement, drivers will enjoy greater access to cleaner, American-made, lower-cost renewable fuels.”
American Coalition for Ethanol (ACE) CEO Brian Jennings also welcomed the decision. “ACE members are grateful the Biden EPA is fulfilling its commitment to apply the law with respect to Small Refinery Exemptions, consistent with the Agency’s previous actions in April and June of 2022 and the Tenth Circuit Court’s ruling that small refinery exemptions may only be granted when a small refinery’s hardship is caused by the RFS program itself. Upholding the RFS in this way helps the program serve as an effective tool to maximize the use of cleaner biofuels available here and now.”