EPA grants 29 small refinery fuel exemptions, denies three

The U.S. Environmental Protection Agency (EPA) has announced its final decisions on 34 small refinery exemption (SRE) petitions filed under the Renewable Fuel Standard (RFS) program for the 2025 compliance year, granting full exemptions to 18 refineries, partial exemptions to 11, denying 3 and determining 2 petitions ineligible. The action, titled August 31, 2026 Decision on Petitions for RFS Small Refinery Exemptions, was published in the Federal Register of Wednesday, September 2, 2026 (Vol. 91, No. 169, Notices section, pp. 56444–56447), under document FR Doc. 2026–17985.

The decisions

In the August 31, 2026 SRE Decisions Action, EPA acted on 34 individual petitions from 34 refineries seeking an exemption from their RFS obligations for the 2025 compliance year. In consultation with the Department of Energy (DOE), the Agency reviewed all information submitted by each refinery in support of its petition.

• 18 petitions granted full (100 percent) exemptions.
• 11 petitions granted partial (50 percent) exemptions.
• 3 petitions denied.
• 2 petitions determined ineligible.

EPA is also reissuing a partial exemption for 1 petition for the 2024 compliance year that was originally issued in the August 3, 2026 Decision on Petitions for RFS Small Refinery Exemptions.

Legal basis and nationwide effect

The Clean Air Act (CAA) allows a small refinery — defined as one whose average aggregate daily crude oil throughput does not exceed 75,000 barrels — to petition EPA for an extension of its exemption from RFS obligations on grounds of disproportionate economic hardship (DEH). EPA Administrator, in consultation with the Secretary of Energy, considers the findings of the 2011 DOE study and other economic factors.

EPA’s adjudications rest on three determinations of nationwide scope or effect: that CAA section 211(o)(9) authorizes the Agency to find partial DEH and extend a partial exemption; that the DOE matrix is a reasonable proxy for DEH, creating a rebuttable presumption to which EPA defers unless other economic factors compel a departure; and that, where a refinery has already retired RINs for compliance, the only permissible way to implement an exemption is to return those retired RINs. EPA confirmed that its review of refinery-specific facts did not change the final decision for any petition.

Judicial review window

Because the actions are based on determinations of nationwide scope or effect, EPA has published its finding under CAA section 307(b)(1). Petitions for judicial review of these final actions must be filed in the United States Court of Appeals for the District of Columbia Circuit by November 2, 2026. The notice was signed by Aaron Szabo, Assistant Administrator of EPA’s Office of Air and Radiation, with Campbell Martin of the Office of Transportation and Air Quality as the contact.

Why it matters

The decision affects the integrity of the RFS program nationwide: by returning retired RINs rather than issuing new ones, EPA aims to avoid a sudden influx of RINs that could depress prices and destabilize the renewable fuel market. For the 29 refineries granted relief, the exemptions reduce their compliance obligations for 2025, while the D.C. Circuit review window gives affected parties a defined path to challenge the Agency’s interpretation.

Source: Federal Register, Vol. 91, No. 169, Wednesday, September 2, 2026, Notices section, pp. 56444–56447 (official reference: FR Doc. 2026–17985).