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Ethanol groups react to EPA SRE decision

There are mixed reviews from ethanol groups over EPA’s decision to grant small refinery exemptions.

Renewable Fuels Association President and CEO Geoff Cooper says the agency’s action is mostly good news for the ag industry since many petitions were before 2023. “We don’t really expect these exemptions that EPA is granting retroactively will have any real practical impact on the marketplace. There shouldn’t be any real disruption in the marketplace or any reduction in the actual volume of renewable fuels that are produced and consumed.”

On Friday, the EPA issued decisions involving 175 petitions for (SREs) from 2016-2024. The agency granted full exemptions to 63 petitions, partial exemptions to 77 petitions, denied 28 and deemed 7 ineligible.

However, Cooper tells Brownfield, “Small refinery exemptions are not warranted. Period. The law says that refiners must demonstrate that RFS compliance causes them disproportionate economic hardship in order to get an exemption. We still don’t believe that small refiners are able to show that.”

Brian Jennings, American Coalition for Ethanol CEO, says EPA’s approach is reasonable but will closely watch monitor if the decision to not reallocate exemptions from 2016-2022 will impact the market.

Clean Fuels Alliance America Vice President of Federal Affairs Kurt Kovarik says the decision creates fresh uncertainty for ag producers and biofuels producers.

Emily Skor, CEO of Growth Energy, says the decision doesn’t provide the industry with enough certainty and would like to see every gallon reallocated to provide stability for biofuel demand.

The EPA says it will issue a supplemental proposal on how they intend to reallocate exempted gallons for 2023 and later.

Geoff Cooper: