EPA Rules on 6 Small Refinery Fuel Exemptions
Published Date: 8/5/2026
Notice
Summary
The Environmental Protection Agency (EPA) is providing notification of its final action entitled August 3, 2026 Decision on Petitions for RFS Small Refinery Exemptions ("August 3, 2026 SRE Decisions Action") in which EPA issued decisions on 6 small refinery exemption (SRE) petitions under the Renewable Fuel Standard (RFS) program. EPA is providing this notification for public awareness of, and the basis for, EPA's decision announced on August 3, 2026.
Analyzed Economic Effects
4 provisions identified: 3 benefits, 1 costs, 0 mixed.
Decisions on 6 Small Refinery Petitions
EPA announced decisions on 6 small refinery exemption (SRE) petitions for the 2023 and 2024 compliance years on August 3, 2026 and published notice August 5, 2026. EPA granted a full (100%) exemption to 1 petition, granted partial (50%) exemptions to 2 petitions, denied 0 petitions, and found 3 petitions ineligible.
EPA Can Grant Partial SRE Exemptions
EPA announced it interprets Clean Air Act section 211(o)(9)(B) to allow the Agency to find a small refinery would experience partial disproportionate economic hardship (DEH) and to extend a partial exemption. EPA explained this interpretation as a nationwide legal determination in the August 3, 2026 SRE Decisions Action.
EPA Will Defer to DOE's DEH Matrix
EPA stated it will treat the Department of Energy (DOE) matrix (based on the 2011 DOE study) as a reasonable proxy for determining disproportionate economic hardship (DEH) and will defer to DOE's findings unless EPA's consideration of other economic factors compels a different result. EPA described this as a nationwide, rebuttable presumption used in evaluating SRE petitions.
Exemptions Implemented by Returning Retired RINs
EPA determined that when it grants an exemption (full or partial) to a small refinery that already retired Renewable Identification Numbers (RINs) to comply, EPA is limited to returning some or all of those retired RINs commensurate with the exemption. EPA said this approach is intended to avoid a sudden influx of current vintage RINs that would depress RIN prices and threaten RIN market stability.
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Key Dates
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