EPA Grants Partial Relief as It Rules on Six Small Refinery Exemption Petitions

The U.S. Environmental Protection Agency (EPA) has issued final decisions on six petitions from four small refineries seeking exemptions from Renewable Fuel Standard (RFS) obligations for the 2023 and 2024 compliance years. The decisions follow reviews conducted in consultation with the Department of Energy (DOE), including consideration of economic factors and information submitted by each refinery. EPA granted a 100% exemption to one petition and 50% exemptions to two others, while determining that three petitions were ineligible. No petitions were denied outright. The decisions represent final agency actions and establish how EPA will implement RFS relief when an exemption is granted. The ruling also sets out EPA’s interpretation of Section 211(o)(9) of the Clean Air Act, which governs small refinery exemptions. The agency said its decisions were based on statutory requirements, its review of the individual petitions, consultation with DOE and findings from the DOE Small Refinery Study. The latest actions provide clarity for refiners navigating their renewable fuel compliance obligations while also shaping how EPA will approach future exemption requests. For the broader renewable fuels market, the decisions could influence the balance between refinery compliance costs and demand for renewable fuel credits under the RFS.