Renewable Fuel Standard Exemptions for Small Refineries

Under EPA’s Renewable Fuel Standard (RFS) program, a small refinery may be granted a temporary exemption from its annual Renewable Volume Obligations (RVOs) if it can demonstrate that compliance with the RVOs would cause the refinery to suffer disproportionate economic hardship. This web page provides information about small refinery exemptions (SREs) and about the process for requesting an exemption.

• Background
• How to submit a petition for exemption

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Background

The Clean Air Act (CAA) mandates that transportation fuel sold or introduced into commerce in the United States contain minimum volumes of renewable fuel. EPA implements this mandate through the RFS program. RFS regulations require obligated parties (fuel refiners and importers) to satisfy the volume obligations: by blending renewable fuels into their gasoline or diesel fuel products, or by acquiring credits that represent the required renewable fuel volume. The CAA includes a temporary exemption from renewable fuel volume obligations for small refineries. Small refineries seeking an exemption must petition EPA. The exemption may be granted only if EPA determines, based on supporting evidence provided in the petition, that compliance with the RFS program would cause "disproportionate economic hardship" for the refinery in the year for which exemption is requested. The RFS regulations define a small refinery as one with an average crude oil input no greater than 75,000 barrels per day (bpd). Additionally, the small refinery may not have an average aggregate daily crude oil throughput greater than 75,000 bpd in the most recent full calendar year prior to submitting a petition, and cannot be projected to exceed the 75,000 bpd threshold in the year or years for which it is seeking an exemption.

On December 7, 2021, EPA proposed to deny all pending SRE petitions under the RFS program. EPA is requesting public comment on this proposed decision. In response to requests from affected parties, EPA extended the comment period for the proposed decision to February 7, 2022.

• Proposal to Deny Petitions for Small Refinery Exemptions
• 40 CFR Part 80.1441 - Small Refinery Exemption
• Small Refinery Exemption Studies from the Department of Energy
• Read EPA’s Feb. 22, 2021 Statement: EPA Signals New Position on Small Refinery Exemptions

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How to Submit a Petition for Exemption

Follow these steps to submit a Small Refinery Exemption Petition:

STEP 1: Determine whether you qualify for exemption.

• 40 CFR Part 80.1441(e)(2)

STEP 2: If you qualify, prepare full documentation to support your petition.

• Company business plans;
• Financial statements;
• Tax filings;
• Communications with potential suppliers or lenders; and
• Other records that demonstrate you satisfy the underlying substantive requirements to be accorded relief.
• Additional guidance:
  • 40 CFR Part 80.1441 - Small Refinery Exemption
  • Information to be Submitted with 2016 RFS Small Refinery Exemption Petitions

STEP 3: Submit your petition using one of the methods below.

Submission method	Address
Electronic	Chris McKenna Mckenna.chris@epa.gov
U.S. Mail	Attn: RFS Program U.S. Environmental Protection Agency Mail Code 6405A 1200 Pennsylvania Ave, NW Washington, DC 20460
Overnight or courier services	Attn: RFS Program U.S. Environmental Protection Agency William Jefferson Clinton Building North Mail Code 6405A Room 6520V 1200 Pennsylvania Ave, NW Washington, DC 20004 Telephone: 800-385-6164

STEP 4: EPA will review the petition.

• EPA will evaluate the submission to determine whether an exemption may be granted, based on information presented by the petitioning refinery and on the statutory and regulatory requirements for  exemption.
• EPA will issue a decision within 90 days of receiving complete supporting information for the request from the small refinery.