EPA denies 26 SRE petitions

The U.S. EPA on July 14 denied 26 petitions filed by small refineries seeking small refinery exemptions (SREs) from their Renewable Fuel Standard blending obligations for one or more of the compliance years between 2016 and 2023. Only two SRE petitions remain pending, both for compliance year 2018.

“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,” said the EPA in a notice posted to its website. “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.”

The agency also added new data to its online SRE dashboard listing SRE petitions submitted on July 1, 2022 or later. That data indicates such SRE petitions were filed by Cross Oil Refining and Marketing, Hunt Refining Co., Calumet Montana Refining, Calumet Shreveport Refining, American Refining Group, Ergon Refining, Ergon-West Virginia, Placid Refining Co., San Joaquin Refining Co., Par Hawaii Refining, U.S. Oil & Refining Co., Wyoming Refining Co., Wynnewood Refining Co., the San Antionio Refinery, American Refining Group, Countrymark Refining and Logistics, and Cross Oil Refining and Marketing.  

In addition, the EPA has published a list of 17 small refineries that have opted into the agency’s alternative renewable identification number (RIN) retirement schedule for the 2020 compliance year. Those refineries include American Refining Group, Big West Oil, Calumet Montana Refining, Calumet Shreveport Refining, Countrymark Refining and Logistics, Cross Oil Refining and Marketing, Ergon-West Virginia, Hunt Refining Co., Kern Oil & Refining Co., Par Hawaii Refining, San Joaquin Refining Co., Sinclair Wyoming Refining Co., the San Antonio Refinery, United Refining Co., U.S. Oil & Refining Co., and Wyoming Refining Co.

The Renewable Fuels Association is thanking the EPA for its action to deny 26 SRE petitions. “We thank President Biden and EPA Administrator Michael Regan for continuing to make good on their promises to restore integrity and certainty to the RFS program,” said Geoff Cooper, president and CEO of the RFA. “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.” 

Growth Energy is also applauding the agency’s action. “We appreciate the EPA standing by its commitment to protect the integrity of the RFS,” Emily Skor, CEO of Growth Energy. “Nearly two decades of data prove that the supposed ‘cost’ to refiners is an accounting fiction, and EPA’s decision reflects those facts. We look forward to working with EPA to ensure the RFS continues to promote lower-cost, lower-carbon fuel options at the pump.”

The American Coalition for Ethanol said the EPA’s decision upholds the RFS. “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,” said Brian Jennings, CEO of ACE. “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.” 

Additional SRE data is available on the EPA’s website.