Today, Clean Fuels Alliance America began carefully evaluating EPA’s grant to 38 small refineries of full or partial exemptions from compliance with the Renewable Fuel Standards for 2016-2024. EPA announced a new framework for granting small refinery exemption petitions and applied it to more than 175 pending petitions, including previously denied petitions.
Clean Fuels expressed wariness of the agency’s award to the refiners of more than 1.4 billion Renewable Identification Numbers (RINs) from compliance years 2023 and 2024 to be used for the delayed compliance deadline for 2024. EPA indicated it will propose a supplemental rule in the coming month to consider reallocating the associated RIN gallons and address the impact on the recently proposed 2026-2027 RFS volumes. Clean Fuels looks forward to working with EPA to quickly finalize this proposal, which will delay the finalization of the 2026 and 2027 rule.
Kurt Kovarik, Clean Fuels’ Vice President of Federal Affairs, stated, “EPA’s course correction on RFS small refinery exemptions creates fresh uncertainty for America’s farmers and biodiesel, renewable diesel, and SAF producers. We look forward to working with the agency to ensure today’s decision does not unwind the strong signal of support issued in June through robust RFS volumes meant to drive growth and recognize investment in domestic fuels and American agriculture.”
In the recently proposed Renewable Fuel Standards for 2026 and 2027 and Draft Regulatory Impact Analysis, EPA reiterated that its analyses consistently show “all obligated parties—including small refiners—fully recover the costs of RFS compliance” through fuel sales.
Kovarik continued, “EPA’s announcement conflicts with its consistent finding that small refiners are not facing disproportionate economic hardships from RFS compliance. Refunding retired RINs has the potential to undercut current markets for domestic biodiesel, renewable diesel, and SAF as well as for American oilseed crops and other feedstocks. This announcement comes just as farmers begin planning to harvest the year’s soybean crop, which is expected to achieve a record-setting yield. We urge EPA to ensure that small refinery exemptions do not undermine the market for farmers and clean fuel producers.”
