Our sources indicate EPA has decided to grant 30 small refinery waivers from their 2018 Renewable Fuel Standard blending obligations. A total of four small refiner exemptions (SREs) were withdrawn or declared ineligible and just six were rejected, according to our sources. An official announcement was expected this afternoon, but was not yet out as of press time.
While the number of waivers granted would be down from those granted in 2017, the decision will likely upset corn and ethanol sector stakeholders, as the waivers effectively undercut the blending targets mandated by the RFS. The industry has pushed for re-allocation on waived gallons, but EPA has thus far shown little interest in doing so.
Renewable fuel credits reportedly plummeted in anticipation of the announcement.