Renewable Fuel Credit Prices May Rise Following Friday’s SRE Decision

The EPA  announced the action of denying 26 petitions from small refineries seeking small refinery exemptions (SREs) from the Renewable Fuel Standard (RFS) Program. The action removes all but two outstanding SRE petitions for compliance years spanning 2016 through 2023.

The RFS requires oil refiners to either blend billions of gallons of biofuel into the nation’s fuel mix, or to purchase tradable credits from other blenders or producers. The EPA has been known to award exemptions to some small refiners that have been able to prove that compliance with the program, i.e. buying credits, causes undue harm.

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