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

The EPA granted full exemptions to 63 and partial exemptions to 77 small refinery petitions from 2016-2024, with a supplemental rule proposed for reallocation of exempted gallons.

  • On 08/22/2025 the U.S. Environmental Protection Agency under President Donald Trump granted exemptions to some small oil refineries while postponing a decision on larger refiners covering exempted gallons, addressing petitions from 2016 through 2024.
  • A mounting backlog of SRE petitions from 2016 arose as small refineries sought waivers by showing 'disproportionate economic hardship' amid political delays.
  • The rulings applied a revised petition framework to more than 175 pending petitions , granting 63 full exemptions, 77 partial exemptions, denying 28 and deeming seven ineligible.
  • Industry and farm groups say the rulings will affect oil and agricultural markets and prices, while EPA will propose a supplemental rule in the coming month to address reallocating Renewable Identification Numbers and 2026-2027 RFS volumes.
  • Legal challenges loom as EPA plans reallocation for 2023 and later but no reallocation for 2016-2022, with Clean Fuels Alliance America warning that more than 1.4 billion RINs risk market disruption.
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Bloomberg broke the news in United States on Friday, August 22, 2025.
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