EPA grants small refiners 1.76 billion biofuel waivers for 2025

The U.S. Environmental Protection Agency (EPA) has approved small refinery exemptions from federal biofuel blending mandates totaling 1.76 billion renewable fuel credits for the 2025 compliance year. The figure is nearly double what the agency had initially projected it would exempt.

The decision comes as the White House seeks to ease pressure on gasoline prices, which have climbed sharply amid the U.S.-Israeli conflict with Iran. Refiners have pushed for the waivers to lower fuel production costs, while farm-state lawmakers warn the exemptions could reduce demand for crops used in biofuel production.

Under the Renewable Fuel Standard, refiners must blend renewable fuels into gasoline and diesel or purchase credits, known as renewable identification numbers (RINs). The EPA said it granted full exemptions to 18 of the 34 refineries that applied for relief from their 2025 obligations. Eleven refineries received 50% exemptions, three petitions were denied, and two were deemed ineligible.

Refineries owned by Marathon Petroleum and Chevron were among those receiving exemptions, according to the EPA.

The agency said it will propose by the end of October to reallocate 100% of the difference between projected and actual 2025 exemptions into the 2026 and 2027 renewable volume obligations, effectively shifting the waived requirements to future years.

The American Petroleum Institute (API), the largest U.S. oil trade group, urged the administration to reject the larger-than-expected package of exemptions, warning it would undermine regulatory certainty. API CEO Mike Sommers said granting exemptions "significantly above" the EPA's projection would be "a significant step backward." He also opposed shifting the exempted obligations to larger refiners in future years, saying both actions would inject uncertainty into the fuels marketplace.