US senators seek clarity on EPA’s small refinery exemption process

Latest Environmental Protection Agency's proposed Renewable Volume Obligations (RVOs) received with mixed reactions

A group of US senators from Wyoming and eight senate Republicans have requested clarity from US energy secretary Jennifer Granholm around the process for vetting and approving the state’s small refinery exemptions (SRE) to the renewable fuel standard.

In a recent letter, signed by senators Cynthia Lummis and John Barrasso as well as other senators, the officials shared their “strong concerns” regarding the Department of Energy’s role in “scoring petitions filed under the small refinery exemption program in the Renewable Fuel Standard and inquiring about the steps DOE plans to take to remedy these shortcomings.”

The letter pointed to a November 2022 report from the US Government Accountability Office (GAO) that examined the policies and procedures of the DOE and the US Environmental Protection Agency (EPA) for the exemption decisions.

Small refinery exemption process

The EPA can grant exemptions if the refiners can prove compliance with the mandates caused financial hardship.

In early April 2022, the EPA denied 36 petitions from refiners seeking exemptions to 2018 biofuel blending laws due to financial hardship.

Meanwhile, the four refineries in the state of Wyoming operate within the parameters of the small refinery exemption.

“Despite repeated requests for the EPA to reconsider its decisions regarding small refinery exemptions to the renewable fuel standard, as well as a GAO report refuting their actions, Administrator Reagan and his staff have decided to double down on their actions against the small refineries that operate across Wyoming,” Lummis said in the letter.

In December 2021, the EPA attempted to block all pending SRE requests.

In January 2022, meanwhile, Lummis and her colleagues sent a letter to the EPA, citing concern for the new approach to SRE petitions.

Late last year, a group of US senators wrote to the EPA calling for greater renewable volume obligations (RVOs) ahead of the release of the 2023 blending targets in December, stating that previously, renewable volume obligations (RVOs), which were backed by statutory volumes, had been undermined by SREs.

The Environmental Protection Agency’s proposed Renewable Volume Obligations (RVOs), which were finally released on December 1 after being delayed several times, called for an increased overall blending mandate of 20.82 billion gallons for 2023, 21.87 billion gallons for 2024 and 22.68 billion gallons for 2025, prompting highly mixed industry reactions.

What to read next
US President Donald Trump’s decision to impose 25% tariffs on imports of steel products into the US has generated a strong reaction in the EU, with market sources expecting a domino effect and a subsequent trade war, Fastmarkets heard on Tuesday February 11.
US Census Bureau data released on Wednesday, February 5 shows calendar year 2024 imports were 18% below import totals in the same period of 2023, while calendar year 2024 exports were 31% below comparative 2023 exports. Biodiesel imports experienced quarter-on-quarter declines in each quarter during 2024. Imports were expected to fall as the market began […]
The lithium market in 2025 is expected to face significant challenges due to production cuts, shifting demand patterns, and geopolitical tensions. These factors are poised to reshape the market landscape, impacting supply chains and pricing strategies.
The impact of the US’ breakneck flip-flop on immediate 25% tariffs on Mexican and Canadian goods this week is adding confusion to a North American steel market long-starved of certainty, sources told Fastmarkets.
U.S. tariffs on Mexico shape global trade dynamics, impacting products and prices on both sides of the border.
US processors crush a new all-time record high of 218 million bushels of soybeans