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Small US refiners plan to problem biofuel mixing waiver denials.
A gaggle of refiners plan to file a lawsuit difficult the Biden administration’s rejection of waivers to exempt oil refiners from biofuel mixing mandates which has left some on the hook for a whole lot of tens of millions of {dollars}, Par Pacific advised Reuters.
The Environmental Safety Company (EPA), which has the authority to difficulty the waivers, on Friday denied exemption requests from 15 small refineries in a transfer that corn farmers and ethanol producers welcomed.
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Refiners together with Par Pacific Holdings Inc (PARR.N) plan to affix collectively in a authorized problem in opposition to the choice, a Par Pacific spokesperson advised Reuters.
Ashimi Patel with Par Pacific, mentioned:
We consider EPA’s determination is unfair, capricious, and opposite to regulation.
Par Pacific and CVR Power (CVI.N) have a number of the largest excellent obligations.
Beneath the Renewable Gasoline Normal (RFS), oil refiners should mix billions of gallons of biofuels into the nation’s gasoline combine or purchase credit – often called RINs – from people who do. The EPA can, nevertheless, award exemptions to some small refiners in the event that they show that the obligations trigger them undue hurt.
David Lamp, CVR Power Chief Govt mentioned throughout the firm’s first quarter earnings name in Might, earlier than the EPA’s determination final week mentioned:
We’ll proceed to combat for our rights that we consider Wynnewood (Oklahoma refinery) is entitled to.
Par Pacific’s gross RINs and environmental credit score obligations stood at $347 million on the finish of the primary quarter 2023, primarily based on market pricing then, an organization submitting confirmed. CVR Power’s excellent legal responsibility was about $582 million on the finish of the primary quarter, one other submitting confirmed.
Because the EPA underneath President Joe Biden has not granted any refiner an exemption, the EPA’s determination final week was not a shock, Tudor, Pickering, Holt and Co’s Matthew Blair mentioned in a be aware on Monday.
The American Gasoline and Petrochemical Producers (AFPM)refiner commerce group assailed the EPA’s broad rejections.
Ericka Perryman, AFPM spokesperson mentioned:
Congress understood from the get-go that RFS compliance might impose a disproportionate monetary burden on small refineries.
Renewable gasoline credit for the 2023 compliance yr have been at $1.54 per gallon on Monday, merchants mentioned.
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Small U.S. refiners plan to problem biofuel mixing waiver denials, NEW YORK, July 18, 2023