Bill aims to alter small refinery provisions of the RFS

Sen. Cynthia Lummis, R-Wyo., on July 19 introduced a bill that aims to alter the Renewable Fuel Standard by changing the way renewable identification number (RIN) compliance credits are generated and slashing the renewable volume obligations (RVOs) of small refiners.

A statement released by Lummis’ office indicates that the legislation, titled the Small Refinery Relief Act, was introduced in response to the U.S. EPA’s July 14 denial of 26 small refinery exemption (SRE) petitions.

The legislation would amend Section 201(o)(9) of the Clean Air Act, which is the portion of the RFS that focuses on small refineries, by adding language stating that for the purposes of complying with RFS RVOs, a small refinery would be allowed to generate 1.5 credits for each gallon of gasoline blended with ethanol and 2 credits for each gallon of diesel blended with biodiesel.

The bill would also require that the annual RVOs for a small refinery be calculated based on 50 percent of the facility’s annual gasoline production and 30 percent of its annual diesel production. Any blending in excess of the annual RVO for a small refinery would generate credits that that could be used for compliance or sale.

A full copy of the bill is available on Lummis’ website.