EPA is now proposing to extend the deadline for small refiners to show compliance under the Renewable Fuel Standard (RFS) for 2019 until Nov. 30, 2021 “in light of uncertainty surrounding small refinery exemptions (SREs) under the RFS program.”
EPA is also proposing that for 2020, all obligated parties would have a compliance deadline of Jan. 31, 2022, and a June 1, 2022, attest engagement report deadline.
The Supreme Court consideration of the 10th Circuit Court of Appeals decision that invalidated three SREs for the 2016 compliance year, EPA said the resolution of that process “has the potential to impact the availability of SREs going forward.” EPA's notice also stated “a presently unknown number of small refineries' compliance obligations will be affected by ongoing litigation and it is consistent with our eligibility requirements regarding SREs.” The decision to extend the 2020 compliance dates for all parties comes due to the agency not yet putting for the 2021 biofuel and 2022 biodiesel RFS levels, and action EPA said can impact the level of Renewable Identification Numbers (RINs) available as those have a two-year lifespan.
While EPA does not state in the notice that it will not make decisions on 2019 or even 2020 SREs, it is clear the Supreme Court case will impact those decisions and thus that means reports the agency was prepared to grant a majority of the 32 pending SREs for the 2019 compliance year are not on the mark.
EPA also made no reference to when they will propose the 2021 biofuel and 2022 biodiesel RFS levels. Given that situation, it would appear the Biden administration will now be the ones responsible for making the call on SREs and likely the 2021 biofuel and 2022 biodiesel RFS levels.