Renewable Fuel Standard Exemptions for Small Refineries
Regulated parties may use this web page to aid in understanding the exemptions. However, the information posted here does not in any way alter the requirements of the regulations and does not establish or change legal rights or obligations. Please refer to the applicable regulations under which you are requesting an exemption for specific information about application requirements.
Under EPA’s Renewable Fuel Standard program, a small refinery may be granted a temporary exemption from its RFS obligations for the reason of disproportionate economic hardship. This page provides information about small refinery exemptions and the process for requesting an exemption.
Background
The Clean Air Act 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 their RFS obligations by obtaining and retiring for compliance credits representing renewable fuel. The CAA provided all small refineries an initial blanket exemption from their RFS obligations until calendar year 2011 and includes additional provisions for small refineries to seek an extension of that exemption. Small refineries seeking such an exemption must petition EPA and the exemption may be granted only if EPA determines, based on supporting evidence provided in the petition, that the refinery would experience "disproportionate economic hardship" in the year for which the 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. Additionally, only a refinery that received the initial blanket exemption and that has an average aggregate daily crude oil throughput that does not exceed 75,000 bpd for the year for which the refinery is seeking an exemption and the prior year is eligible to petition for an exemption.
- 40 CFR Part 80.1441 - Small Refinery Exemption
- Small Refinery Exemption Studies from the Department of Energy
How to Submit a Small Refinery Exemption Petition
Follow these steps to submit a small refinery exemption petition:
STEP 1: Determine whether you qualify for exemption.
The following regulations describe the conditions that must exist for EPA to extend an exemption. Small refineries must have qualified for the initial blanket exemption under CAA section 211(o)(9)(A)(i) and have an average aggregate daily crude oil throughput that does not exceed 75,000 bpd for the year for which the refinery is seeking an exemption and the prior year in order to petition for an extension of the exemption.
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:
STEP 3: Submit your petition.
| Submission method | Address |
|---|---|
| Electronic | SRE-Petitions@epa.gov |
STEP 4: EPA will review the petition.
- EPA will evaluate the submission to determine whether to extend the exemption based on information presented by the petitioning refinery and on the statutory and regulatory requirements for an exemption.
- EPA will issue a decision within 90 days of receiving complete supporting information for the request from the small refinery.