Lawmakers are giving EPA a fresh nudge to let more small petroleum refineries sidestep biofuel blending requirements for economic reasons.
An annual appropriations deal awaiting congressional action would direct the environmental agency to revisit how it awards economic hardship exemptions from the renewable fuel standard’s blending mandate. Lawmakers cited a government report disputing EPA’s claim that small refineries escape the cost of compliance by passing it along to customers.
Appropriators included the provision in their report accompanying the Interior-EPA spending bill for fiscal 2026. Although it doesn’t carry the force of law, it reflects lawmakers’ intent and marks a victory for independent refiners who blame the RFS for harming them economically.
The measure directs EPA to devise policies and procedures for small refinery exemptions that are “consistent with the findings of the impact of compliance costs on small refiners” from a 2022 report by the Government Accountability Office.
