EPA Grants Biofuel Exemption to Delek US Refinery

The United States Environmental Protection Agency granted a full exemption from 2024 federal biofuel blending requirements to Alon Refining Krotz Springs, a facility operated by Delek US Holdings. This decision follows an emergency motion filed in late July by both Alon Refining Krotz Springs and HF Sinclair in the U.S. Court of Appeals for the District of Columbia Circuit to expedite rulings before the September 1 compliance deadline.

In contrast, the agency declared hardship waiver petitions for two HF Sinclair refineries ineligible. The EPA specified that the facility in Artesia, New Mexico, exceeded the 75,000 barrel-per-day crude throughput limit necessary to qualify as a small refinery under Renewable Fuel Standard regulations.

Under the Renewable Fuel Standard, refiners are required to either blend biofuels into the fuel supply or purchase compliance credits known as RINs. These regulatory challenges occur as the National Petrochemical and Refiners Association continues to challenge the standard in court, citing excessive costs to the industry.