What is a small refinery exemption?

The Small Refinery Exemption was created under the RFS as a safety valve for refineries with a capacity of less than 75,000 b/d if the cost of compliance created financial hardship.

What is considered a small refinery?

The RFS regulations define a small refinery as one with an average crude oil input no greater than 75,000 barrels per day (bpd).

What is renewable volume obligation?

Renewable Identification Numbers (RINs) allow refiners and fuel importers to track each gallon of biofuel and demonstrate compliance with the law. When Congress enacted the RFS targets, lawmakers set specific, near-term goals for the consumption of biofuels.

What is the renewable fuel mandate?

The Renewable Fuel Standard (RFS) is a federal program that requires transportation fuel sold in the United States to contain a minimum volume of renewable fuels. The RFS requires renewable fuel to be blended into transportation fuel in increasing amounts each year, escalating to 36 billion gallons by 2022.

What is the price of RINs?

S&P Global Platts assessed D6 ethanol Renewable Identification Numbers for 2021 at $1.3075/RIN, down 23 cents day on day. Platts assessed D4 biodiesel RINs at $1.5025/RIN, 20.5 cents lower on the day. Both assessments were the lowest since May 17.

What is SRE fuel?

RINs are generated when renewable fuels are produced domestically or imported. To meet their obligations, refineries may blend renewable fuel or purchase RINs from other parties that have not used (or retired) RINs for compliance, or obtain an SRE from the EPA.

Is alcohol a renewable fuel?

Ethanol is a renewable biofuel because it is made from biomass. Ethanol is a clear, colorless alcohol made from a variety of biomass materials called feedstocks (the raw materials used to make a product).

What is a D3 Rin?

Cellulosic biofuel RIN (D3) – These RINs are generated by blending ethanol made from cellosic material (eg corn stover, wood chips, miscanthus, biogas) into gasoline.

What is the ethanol mandate?

Under the RFS, refiners must blend some 15 billion gallons of ethanol into their fuel each year – a huge boost to the corn industry – along with billions of gallons of other types of biofuels. …

Why are RINs so expensive?

Although the RFS renewable volume obligations for 2021 have yet to be released, RIN prices have been increasing because of limited fuel production as a result of lower fuel demand related to responses to COVID-19, fewer approved new small refinery exemptions (SRE) since 2018, and uncertainty around future RFS levels.

Who purchases RINs?

These RINs are generated by renewable fuel producers or importers and are bought and sold “attached” to the renewable fuel until the fuel is purchased by an “obligated party” (a refiner or importer of gasoline or diesel fuel) or blended with a petroleum-based transportation fuel.

Can you eat ethanol?

While ethanol is consumed when drinking alcoholic beverages, consuming ethanol alone can cause coma and death. However, ethanol is a toxic chemical and should be treated and handled as such, whether at work or in the home.

When does the EPA grant a small refinery exemption?

EPA may grant the extension if it determines that the small refinery has demonstrated disproportionate economic hardship per CAA section 211 (o) (9) (B) and 40 CFR 80.1441 (e) (2). EPA’s decision to grant an exemption has the effect of exempting the gasoline and diesel produced at the refinery from the percentage standards of 40 CFR 80.1405.

How are small refineries exempt from the RFS?

Under EPA’s Renewable Fuel Standard (RFS) program, a small refinery may be granted a temporary exemption from its annual Renewable Volume Obligations (RVOs) if it can demonstrate that compliance with the RVOs would cause the refinery to suffer disproportionate economic hardship.

What does exemption from 40 CFR 80.1405 mean?

EPA’s decision to grant an exemption has the effect of exempting the gasoline and diesel produced at the refinery from the percentage standards of 40 CFR 80.1405. The exempted refinery is not subject to the requirements of an obligated party for fuel produced during the compliance year for which the exemption has been granted.