(U.S. Environmental Protection Agency) On August 22, 2025, EPA announced its decisions on 175 individual small refinery exemption petitions from 38 refineries seeking an exemption from their Renewable Fuel Standard obligations for the 2016–2024 compliance years. In consultation with the Department of Energy, EPA reviewed all the information submitted by each individual refinery in support of its petition. After careful consideration of all statutory factors and the information submitted by the refineries, EPA is granting full (100 percent) exemptions to 63 petitions, granting partial (50 percent) exemptions to 77 petitions, denying 28 petitions, and determining 7 petitions to be ineligible.
This document articulates EPA’s interpretation of section 211(o)(9) of the Clean Air Act and EPA’s authority with respect to SRE petitions. As required by CAA section 211(o)(9), EPA’s final actions on the pending SRE petitions are based on the legal and factual analysis presented herein, after consulting with DOE, and considering the DOE Small Refinery Study and “other economic factors.”
This document also explains how EPA will implement SRE decisions when an exemption is granted. In addition, this document articulates the status of 34 SRE petitions from 31 refineries for the 2016–2018 compliance years.
The decisions in this document are final Agency actions.
Additional Resources
- Notice of August 2025 Decisions on Petitions for Small Refinery Exemptions Under the Renewable Fuel Standard Program (pdf) (194.31 KB, pre-publication, signed August 22, 2025)
- August 2025 Decisions on Petitions for RFS Small Refinery Exemptions (pdf) (571.67 KB, August 2025, EPA-420-R-25-010) READ MORE
Related articles
- Clean Fuels Will Work with EPA to Reallocate Exempted RFS Gallons (Clean Fuels Alliance America)
- RFA Says EPA Taking ‘Reasonable’ Approach to SRE Backlog (Renewable Fuels Association)
- Growth Energy Statement on EPA SRE Decision (Growth Energy)
- US EPA approves biofuel waivers for small refiners, stirring concerns over demand (Reuters/Yahoo! Finance)
- EPA updating approach to biofuel mandate waivers, court told (Agrii-Pulse)
- Ethanol groups react to EPA SRE decision (Brownfield Ag News; includes AUDIO)
- US EPA fully grants 63 petitions from small refiners seeking exemptions from RFS (S&P Global)
- US exempts small refiners from biofuel quotas: Update (Argus Media)
- US biofuel credits rally 17% following bullish refiner exemption ruling (Quantum Commodity Intelligence)
- In Policy Shift, EPA Grants Dozens Of RFS Waivers, Eyes Future Targets (Inside EPA)
- Biofuels Groups React to EPA SRE Actions (Energy.AgWired.com)
- US Revives Biofuel Hardship Waivers for Small Refiners (Energy Intelligence)
- EPA Acts on Petitions for Small Refinery Exemptions -- NACS welcomes anticipated proposal for reallocating exempted volumes. (National Association of Convenience Stores)
- Trump Hands the Biofuels Business Another Win by Boosting Mandates -- The White House is supporting the alternative fuels’ producers and farmers even as it attacks other clean-energy sources. (Bloomberg)
- Biofuels on USDA Deputy Secretary’s Mind at 2025 FPS (Energy.AgWired.com; includes AUDIO)
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EPA’s latest RFS proposals again split refining, biofuels industries (Inside EPA)
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EPA Approval Of RFS Refinery Waivers Raises Thorny Legal Questions (Inside EPA)
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Calumet provides update after recent US EPA small-refinery exemption decision (Calumet/Biobased Diesel Daily)
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White House review of biofuel waiver plan pits farmers against refiners (Reuters)
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Excerpt from Clean Fuels Alliance America: 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.”
ABOUT CLEAN FUELS ALLIANCE AMERICA
Made from an increasingly diverse mix of resources such as recycled cooking oil, soybean oil, and animal fats, the clean fuels industry is a proven, integral part of America’s clean energy future. Clean Fuels Alliance America is the U.S. trade association representing the entire biodiesel, renewable diesel and sustainable aviation fuel supply chain, including producers, feedstock suppliers and fuel distributors. Clean Fuels receives funding from a broad mix of private companies and associations, including the United Soybean Board and state checkoff organizations. READ MORE
Excerpt from Renewable Fuels Association: While the Renewable Fuels Association continues to question whether these SREs are truly justified, RFA noted that EPA’s approach for implementing these exemptions appears reasonable and should not disrupt the marketplace or reduce actual renewable fuel consumption.
For exempted small refineries who had already fulfilled their RFS obligations for past compliance years, EPA will return the corresponding RINs retired by those small refineries for each compliance year. For all years but 2023 and 2024, those RINs have expired and may not be used to comply with standards that are currently open. EPA also announced its intent to soon propose that exempted volumes for 2023 and beyond be reallocated to ensure that the integrity of already-finalized RFS volumes is maintained. The agency will be accepting public comments on the matter of reallocation for 2023 and beyond.
In response to the EPA announcement, RFA President and CEO Geoff Cooper offered the following statement:
“While RFA continues to doubt that the small refineries receiving exemptions today truly experienced ‘disproportionate economic hardship’ due to the RFS, we are pleased to see EPA taking an approach to implementation of these exemptions that is minimally disruptive to the marketplace and affirms the agency’s intent to reallocate renewable fuel volumes lost to SREs. We appreciate that EPA is focused on an approach that maintains stability in the marketplace and ensures finalized annual volumes under the RFS are maintained. The exemptions granted today should have little or no effect on current and future levels of renewable fuel production and use. It is critical, however, that the renewable fuel blending volumes associated with SREs for 2023 and 2024 are fully reallocated.
“In the days ahead, RFA will be further analyzing EPA’s new approach and rationale for determining disproportionate economic hardship. According to EPA’s previous analysis, all refiners—both small and large—recoup their RIN costs when they sell gasoline and diesel. Thus, there is no credible evidence that small refiners are disproportionately affected by RFS compliance, or that the financial impact of RFS compliance rises to a level anywhere close to ‘economic hardship.’ In any case, SREs were always intended to be a temporary measure and a bridge to compliance—not a permanent handout. Small refiners have now had two full decades to adapt their operations to comply with the RFS.” READ MORE
Excerpt from Growth Energy: Growth Energy, the nation’s largest biofuel trade association, issued the following statement today in response to an SRE decision from the U.S. Environmental Protection Agency (EPA) about small refinery exemptions (SREs) under the Renewable Fuel Standard (RFS).
“With more than 140 granted refinery exemptions, today’s [SRE] decision alone does not give farmers and biofuel producers the certainty they need,” said Growth Energy CEO Emily Skor. “It is imperative that EPA reallocates each and every exempt gallon in a forthcoming rule to mitigate the potentially devastating impact on biofuel demand. We appreciate EPA’s commitment to issue a rule that ensures promised homegrown biofuel gallons reach the marketplace and upholds the administration’s commitment to American energy dominance.”
Learn more about the RFS here. READ MORE
Excerpt from Reuters/Yahoo! Finance: The U.S. Environmental Protection Agency on Friday approved most of its backlog of requests by small oil refineries for biofuel law exemptions, raising concerns among biofuels advocates over a potential hit to demand.
The approvals are also a mixed blessing for the cohort of small U.S. refiners who have argued for years they are hurt financially by the federal mandate to blend biofuels like ethanol into the country's fuel supply. Many of their requests have now become so old that the waivers they have secured are worthless.
...
But because RINS have just a two-year lifespan, only 1.39 billion can still be used for compliance and retain any value, according to the EPA announcement.
...
The EPA said it would issue a proposal soon on how to reallocate the exempted volumes.
The supplemental rule is expected late next week, sources familiar with the planning told Reuters.
...
There are now just 13 pending waiver requests, according to the EPA data. READ MORE
Excerpt from Brownfield Ag News: There are mixed reviews from ethanol groups over EPA’s decision to grant small refinery exemptions.
...
However, Cooper tells Brownfield, “Small refinery exemptions are not warranted. Period. The law says that refiners must demonstrate that RFS compliance causes them disproportionate economic hardship in order to get an exemption. We still don’t believe that small refiners are able to show that.”
Brian Jennings, American Coalition for Ethanol CEO, says EPA’s approach is reasonable but will closely watch monitor if the decision to not reallocate exemptions from 2016-2022 will impact the market.
Clean Fuels Alliance America Vice President of Federal Affairs Kurt Kovarik says the decision creates fresh uncertainty for ag producers and biofuels producers.
Emily Skor, CEO of Growth Energy, says the decision doesn’t provide the industry with enough certainty and would like to see every gallon reallocated to provide stability for biofuel demand.
The EPA says it will issue a supplemental proposal on how they intend to reallocate exempted gallons for 2023 and later. READ MORE includes AUDIO
Excerpt from Argus Media: While the number of exemptions frustrated biofuel and farm advocates, small refiners that lobbied officials for retroactive compensation were denied more sweeping relief. EPA said on Friday that it would return already-surrendered RINs to newly exempt companies but that only credits from 2023 and later could be used for future compliance. Returned older credits, effectively worthless, "are not expected to impact demand for biofuels", the agency said.
Because the older credits have no value, EPA does not plan to force oil companies to blend more biofuels to account for those exemptions. But EPA signaled a different approach for more recent years, saying that it planned to account for actual exemptions in 2023 and 2024 and expected exemptions in 2025 when setting future biofuel quotas. The agency said it would "in the near future" submit a proposal to the White House Office of Management and Budget that will clarify its plan.
EPA had already signaled that it would estimate future exemptions when setting biofuel mandates, but accounting for actual exemptions from active compliance years in addition would be a major shift that could increase costs for larger oil companies, if implemented.
Program data show that affected small refiners have to submit about 1.4bn fewer RINs across 2023 and 2024 following Friday's exemptions — but companies without exemptions could have to make up that lost volume in the future depending on EPA's pending proposal. The total mandates in those years were 20.9bn RINs and 21.5bn RINs respectively. EPA said Friday it aimed to ensure stability in the often-volatile RIN market, noting that replacing expired credits with active ones would have flooded the market with 3bn more RINs.
Current-year D6 ethanol credits rose 4pc and D4 biomass-based diesel credits rose 3pc on Friday, as traders saw EPA's solution to older-vintage credits as limiting supply increases.
Biofuel groups, while frustrated that most eligible refiners won at least some relief, expressed cautious optimism about EPA's plan. Renewable Fuels Association president Geoff Cooper said Friday's exemptions "should have little or no effect on current and future levels of renewable fuel production and use".
But companies will eagerly await more details about EPA's proposal to account for 2023 and 2024 waivers, which could come as soon as next week. EPA has signaled that it wants to finalize new biofuel mandates before November, but that timeline appears ambitious if the agency has to first take comment on a proposal that could drastically shift its formula for setting those mandates.
...
Court fights await
Legal challenges are virtually guaranteed. The agency said that its decisions had "nationwide scope or effect" — an effort to steer litigation toward one federal circuit court rather than a hodgepodge of regional courts that might issue conflicting rulings.
Small refiners denied full relief are likely to challenge the Trump administration's reasoning. EPA said it almost entirely relied on recommendations from the Department of Energy (DOE), which scores individual applications for "disproportionate economic hardship" and considers factors like a refiner's output of diesel compared to gasoline and its local market's acceptance of renewables.
While EPA is legally required to consult with DOE, the new policy of largely deferring to that department's recommendations would be a major change from recent years. A 2022 study from the US Government Accountability Office concluded that DOE's methodology was "critically flawed", and EPA officials at the time told the watchdog agency that DOE's analysis no longer provided useful information.
Accepting DOE scores appears to have led to some counterintuitive results, though specific details from applications are kept confidential. Par Pacific's 18,000 b/d Wyoming refinery earned full exemptions for three straight years before losing relief the next. Ergon's 23,000 b/d facility in West Virginia won partial exemptions for 2021 and 2024, but not the years in between. And EPA offered at least some relief to Suncor's 36,000 b/d Commerce City East refinery over six straight years — while denying any relief for four of those years to Suncor's 67,000 b/d Commerce City West refinery at the same Colorado site.
"Not a lot of rhyme or reason to it", a refining source told Argus.
The unpredictability of the exemptions — with essentially all refiners receiving different answers depending on the year — could also make it hard for EPA to estimate future waivers when finalizing biofuel quotas. The agency has received some exemption petitions for 2025 but has yet to decide any for that year or beyond.
Large oil refiners will also hotly oppose any effort from EPA to raise their biofuel blending to compensate for their smaller competitors winning exemptions. While some oil companies joined with farm groups this year to push for higher biofuel mandates, the industry has more recently expressed frustration with Trump-backed biofuel policies that they say are boosting feedstock and fuel costs.
"It is inexplicable that EPA is even considering adding more mandated biofuels on top of the largest and most expensive [Renewable Fuel Standard] mandate ever proposed by reallocating exempted volumes", the American Fuel and Petrochemical Manufacturers said. READ MORE
Excerpt from National Association of Convenience Stores: Small refineries—those with an average input of less than 75,000 barrels of crude oil per day—may petition for exemptions from their annual RINs obligation if they can demonstrate that they would suffer “disproportionate economic hardship” from complying.
According to NACS Deputy General Counsel Matt Durand, such hardship claims are dubious because refiners of all sizes pass their RFS compliance costs down through the fuel supply chain, thus recouping the price of any RINs they purchased.
"That’s why we advocated for an outright denial of all SRE petitions, although EPA ultimately determined that some still had merit," Durand said. "In those cases, it does seem like EPA is approaching the reallocation issue in a reasonable way, and we’re looking forward to reviewing their proposal to ensure transparency and stability in the market." READ MORE
Excerpt from Energy.AgWired.com: USDA Deputy Secretary of Agriculture Stephen Vaden filled in for his boss at the 2025 Farm Progress Show Tuesday, chatting on the mainstage with Mike Pearson of This Week in AgriBusiness and answering question from farm reporters on site, expressing the administration’s strong support for domestic biofuels.
“I think it’s fair to say that the second Trump administration has been the most pro-biofuels administration that we’ve had,” said Vaden. “We at USDA are very supportive of the Environmental Protection Agency and the proposed renewable volume obligations. We think those numbers are wonderful and are where they need to be and meet the current ability of America to produce biofuels. But we’re even more excited about the proposal that they have recently put out for public comment to reallocate those RINS that are being waived because of the small refinery waivers which EPA is legally required to provide.”
On the trade front, Vaden talked about the Section 301 investigation into Brazil’s trading practices and increasing export market opportunities. “When it comes to where our trade focus needs to be for agriculture, row crops and that includes biofuels are at the top of the list,” Vaden said. “This is our top ask…new markets for our row crops farmers. Corn, soybens, rice, cotton, you name it, and we are doing everything possible to break open these new markets.”
On stage and answering media questions, Vaden also discussed the USDA team and nominees, agency reorganization, modernization of funds distribution to farmers, regional USDA hubs, farm bill future, commodity prices, short term relief, meetings at FPS, staffing questions, and more. READ MORE; includes AUDIO
Excerpt from Calumet/Biobased Diesel Daily: Calumet Inc. provided an update Aug. 26 regarding the recent U.S. EPA decision on small-refinery exemptions (SREs) and the expected impact on its renewable identification number (RIN) credit balance-sheet accrual.
On Aug. 22, EPA notified Calumet that it was successful in receiving full or partial exemptions on every petition that was filed by the company from 2019 through 2024.
With the decision, the company’s prior 2019-’24 RIN-balance sheet accrued liability of 396 million RINs is expected to be reduced to 89 million RINs, of which 57 million are of 2022 and 2023 vintage, and 32 million are 2024.
“We are studying the decision details and will seek additional information from the EPA regarding this residual,” the company stated.
Calumet CEO Todd Borgmann said the recent EPA ruling under the Trump administration “goes a long way to cleaning up” the historical industry backlog.
“For Calumet, the actions remove the majority of our historic RIN obligation,” Borgmann said.
“Further, the decision provides additional clarity for the renewable fuels industry and brings us one step closer to a properly functioning renewables market,” he added.
“We applaud the EPA for this meaningful step and its support for the critical role that small refiners and biofuels play in America’s energy independence,” Borgmann said.
Calumet is headquartered in Indianapolis, Indiana, and operates 12 facilities throughout North America. READ MORE
Excerpt from Reuters: The outcome, expected in the coming weeks, will determine the fate of billions of gallons of U.S. ethanol and biodiesel demand that is seen as vital to farmers who supply the corn and soybeans to produce biofuels, but costly to oil refiners that ensure the biofuels are mixed into the nation's fuel supplies.
...
Biofuel mandates were created to cut greenhouse gas emissions and reduce reliance on fossil fuels, but the Trump administration has largely sidelined that climate goal while prioritizing expanded oil and gas production.
Last month, the Environmental Protection Agency cleared a backlog of more than 170 applications from small refineries, dating back to 2016, for waivers exempting them from the obligation to blend biofuels under the RFS, the nation's biofuel law.
More than 140 were granted, either fully or in part.
That action opened the door to a new supplemental rule on whether and how to force larger refiners to make up for the exempted gallons, a step biofuel producers have long demanded to ensure the annual blending quotas remain whole.
...
The proposal addresses how to redistribute exempted volumes from 2023 and beyond, the EPA confirmed on Thursday, without providing further details.
It includes a preferred option as well as other options that will also be weighed during the review, according to two people briefed on the proposal, speaking on condition of anonymity because the discussions are not public.
Exploring other options signals the administration may not be fully committed to a complete reallocation of exempted volumes, even as it has publicly supported the idea.
...
Farm groups say forcing larger refiners to make up for exempted gallons is essential to keep crop markets from shrinking, but refiners warn it would shift the compliance burden onto larger plants and drive up costs.
The White House is expected to expedite the review, making the proposal public roughly two weeks ahead of a 30-day public comment period, the sources said. READ MORE
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