The Environmental Protection Agency (EPA) is weighing whether to extend the Sept. 1 deadline for oil refiners to demonstrate compliance with the nation’s biofuel blending laws. This move could provide the industry with more flexibility as it grapples with elevated compliance costs, according to sources familiar with the matter.

Background

The Renewable Fuel Standard requires refiners to blend increasing amounts of biofuels into the nation’s fuel supply or purchase credits known as renewable identification numbers (RINs) from those who do. However, the multibillion-dollar RIN market is a key component of the biofuel program and a major source of uncertainty for refiners.

An extension would give refiners more time to meet their obligations and could provide some additional room to manage high RIN prices, which have raised compliance costs for some companies. The EPA has dozens of pending requests from smaller refiners seeking waivers from their obligations, an issue that has put the White House in the middle of a fight between refiners and biofuel producers.

RIN prices have surged this year as refiners face higher compliance costs under the EPA’s ambitious 2026 renewable fuel mandates. The industry has struggled to meet the new obligations, particularly for biomass-based diesel, contributing to tighter credit supplies and higher prices.

Impact

A delay in the compliance deadline could provide refiners with short-term relief by postponing the need to secure additional RINs or make other compliance arrangements while the market adjusts. The Sept. 1 deadline covers compliance with 2025 RFS obligations, and the program gives refiners and other obligated parties flexibility by allowing them to use RINs from prior years, as well as current-year credits, to meet their requirements.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.