EPA grants Delek refinery relief for biofuels, but finds HF Sinclair petitions uneligible

Documents from the U.S. Environmental Protection Agency show that on Monday, they 'granted a Delek US Holdings refining facility full?exemption for federal biofuel blending for 2024 and declared two refineries - owned by HF Sinclair - ineligible for hardship waiver.petitions. The decision was made in response to an emergency motion that was filed by HF Sinclair in late July and Delek's Alon Refining Krotz Springs at the U.S. Court of Appeals District of Columbia Circuit to have the EPA rule?on the economic hardship exemption petitions they submitted for 2023 and 2020 compliance years by August 11. Alon was granted a complete exemption from 2024 obligations by the EPA on Monday. The EPA, however, found HF Sinclair’s Artesia refinery, New Mexico ineligible.for its 2023.and.2024 petitions. It said the facility exceeded 75,000 barrels per day crude throughput required to qualify for a small refinery.

HF Sinclair Delek has not responded to any requests for comment. The EPA decision can be appealed. The RFS requires refiners to blend biofuels in the nation's transportation gasoline supply, or purchase?compliance credit known as RINs. Small refineries can seek exemptions from the RFS if they are experiencing disproportionate hardship due to compliance.

Companies argued that a delayed decision would lessen the value of any relief, as refineries usually acquire RINs before the September 1 deadline for compliance. The American 'Fuel & Petrochemical Manufacturers' trade group contested EPA RFS in June. They claimed it imposed excessive costs on industry.

(source: Reuters)