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EPA Grants Major Small Refinery Exemptions

The agency approved 29 of 34 petitions and said it will propose reallocation by the end of October to restore waived renewable-fuel obligations.

  • On Monday, the EPA announced decisions on 34 petitions from small refineries, granting full exemptions to 18 refineries and partial exemptions to 11, covering about 1.76 billion ethanol-equivalent gallons of renewable fuel credits.
  • The Renewable Fuel Standard requires oil companies to use biofuels or obtain credits; the American Fuel and Petrochemical Manufacturers argues these requirements create significant costs, estimating annual compliance could approach $70 billion.
  • Iowa produced 4.6 billion gallons of ethanol in 2025, accounting for about 28% of U.S. production. Iowa Renewable Fuel Association executive director Monte Shaw warned the exemptions could reduce demand for corn and soybeans.
  • To preserve renewable fuel demand, the EPA plans to add waived requirements back into 2026 and 2027 renewable-fuel obligations, intending to propose the reallocation by the end of October.
  • Sen. Chuck Grassley, R-Iowa, called the decision a significant improvement, urging future administrations to follow the reallocation precedent; the debate echoes 2019 when the EPA issued 85 retroactive exemptions covering 2016 through 2018.
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morningagclips.com broke the news on Tuesday, September 1, 2026.
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