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US EPA approves biofuel waivers for small refiners, stirring concerns over demand

The Environmental Protection Agency granted exemptions to 38 small refineries citing economic hardship and plans a supplemental rule to address biofuel credit reallocations amid industry concerns.

  • On August 22, 2025, the U.S. Environmental Protection Agency approved biofuel-waiver exemptions for 38 small refineries in line with the Renewable Fuel Standard law.
  • This decision follows long-standing challenges over exemption petitions pending since 2016, with the EPA clearing a backlog under the Trump administration while deferring reallocation proposals.
  • Delek US Holdings welcomed the ruling covering years 2019-2024, noting it impacts refineries with 302,000 barrels daily capacity and influences costs for oil companies and biofuel producers.
  • Grant Kimberley of the Iowa Biodiesel Board stated, "We welcome EPA's decision to move this process forward" but highlighted risks to biodiesel producers unless volumes are reallocated back into the program.
  • The ruling emphasizes continued support for small refineries but leaves unresolved questions about future quota redistribution, with EPA promising to address impacts in upcoming rulemaking.
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Bloomberg broke the news in United States on Friday, August 22, 2025.
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