US EPA approves 14 small refinery biofuel waivers

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(Reuters) -The Environmental Protection Agency said on Friday it approved 14 requests from small refineries for full or partial exemptions to the nation’s biofuel blending mandates, drawing criticism from a top U.S. biofuel trade group.

The decisions effectively clear the remainder of the agency’s huge backlog of such requests that had built up under former President Joe Biden’s administration. The EPA had approved 140 petitions in part or in full earlier this year, and denied just 28, leaving just a handful from previous years remaining under review.

Under the Renewable Fuel Standard, refiners are required to blend billions of gallons of ethanol and other biofuels into the nation’s fuel pool each year. But small refiners can seek exemptions if they show the obligations would cause them significant financial hardship.

The waivers have been a lightning rod of contention between oil refiners who want to avoid costly blending obligations and biofuel advocates concerned that they eat into their market.

Under Friday’s decision, two applications were granted 100% exemptions, and 12 were granted 50% exemptions.

The Renewable Fuels Association, a biofuel industry trade group, criticized the waivers as harmful to farmers.

“Today, EPA created even more uncertainty and confusion in the renewable fuel and agriculture markets, which are already under immense pressure from record corn and soybean harvests this fall,” RFA President and CEO Geoff Cooper said.

The agency now has 15 pending applications, including 12 for the 2025 compliance year and three for previous years.

(Reporting by Richard Valdmanis; Editing by Paul Simao)