The EPA announced Friday it has resolved a lostanding backlog of 175 SRE petitions from refineries seeking exemptions from the Renewable Fuel Standard, a federal policy requiring transportation fuel sold in the U.S. to contain a minimum volume of renewable fuels.

Out of the total petitions:

63 were granted full exemptions

77 received partial waivers

28 were denied

7 were ruled ineligible

"EPA is getting the SRE program back on track with an approach that recognizes some small refineries are impacted more significantly than others," the agency stated. The decision reflects an evolving policy that weighs each refinery's level of hardship rather than issuing blanket rulings.

The move reaffirms guidance from the first Trump administration allowing 50% exemptions for refineries that demonstrate partial hardship. It also maintains a key policy allowing the return of previously retired Renewable Identification Numbers (RINs), the compliance credits used to meet RFS targets.

Importantly, the EPA clarified that RINs from 2022 and earlier-which account for most of the 5.34 billion credits exempted-will not affect 2024 and future compliance obligations. The agency said these outdated credits are outside the current compliance window and therefore pose no risk to current biofuel demand.

Still, the decision is expected to face legal challenges. Notably, the EPA has chosen not to reallocate exempted volumes for 2022 and prior years, a move that University of Illinois economist Scott Irwin flagged as "a major potential bearish factor" now removed from the RFS outlook-provided the policy survives in court.

"I suspect the court filings will happen soon," Irwin posted on social media platform X. His comment underscores industry tension between the biofuels sector, which has long opposed broad SRE usage, and refiners, who argue for economic relief.

Overall, the ruling exempts 5.34 billion RINs, most of which are tied to past compliance years, with only 1.39 billion falling outside the 2022 window.

The EPA's action is seen as an attempt to bring predictability and structure back to the SRE process, following years of regulatory limbo. It also sets the stage for renewed litigation and scrutiny from both environmental advocates and the ethanol industry, as debates over RFS implementation continue into 2026.