EPA criticized for RFS small refinery exemption provisions

In Washington, D.C., the Renewable Fuels Association sent a letter to EPA Administrator Scott Pruitt about the “lack of transparency” in EPA’s management of the Renewable Fuel Standard’s (RFS) small refinery exemption provisions. The letter from RFA President and CEO Bob Dinneen warns that “an ill-conceived and unauthorized expansion of this exemption could destabilize the market for renewable fuels and undermine Congress’s goals for the RFS program.”

To provide greater certainty for both renewable fuel producers and obligated parties, the RFA letter also suggested EPA should establish an annual cut-off date for receiving and processing any small refinery exemption requests, and ensure that any exempted volumes are proportionally reallocated to the blending obligations for non-exempt refiners. Alternatively, the agency to continue granting hardship exemptions in the year they are received, but adjust the total gasoline and diesel percentage standards in the subsequent calendar year to offset the reductions.