EPA gives Delek refinery biofuel relief, finds HF Sinclair petitions ineligible

Delek US Holdings

03/08/2026 21:11

NEW YORK, Aug 3 (Reuters) - The U.S. Environmental Protection Agency on Monday granted a Delek US Holdings DK.N refinery full exemption from federal biofuel blending requirements for 2024 while declaring hardship waiver petitions for two refineries owned by HF Sinclair DINO.N ineligible, according to agency documents.
The decision followed an emergency motion filed in late July by HF Sinclair and Delek-owned Alon Refining Krotz Springs in the U.S. Court of Appeals for the District of Columbia Circuit, meant to get the EPA to rule on their economic hardship exemption petitions for 2023 and 2024 compliance years by August 11.
On Monday, the EPA granted Alon a full exemption from its 2024 obligations. It, however, found HF Sinclair's Artesia, New Mexico, refinery ineligible for its 2023 and 2024 petitions, saying the facility exceeded the 75,000 barrel-per-day crude throughput limit required to qualify as a small refinery under Renewable Fuel Standard (RFS) regulations.
HF Sinclair and Delek did not respond to requests for comment. The EPA's decision can be appealed. 
Under the RFS, refiners must blend biofuels into the nation's transportation fuel supply or buy compliance credits known as RINs from those who do. Small refineries can seek exemptions if compliance, such as high RIN prices, causes disproportionate economic hardship.
The companies had argued a delayed ruling would reduce the value of any relief because refineries typically acquire RINs ahead of the September 1 compliance deadline.
In June, the American Fuel & Petrochemical Manufacturers trade group challenged EPA's RFS in court, saying it imposes excessive costs on the industry.
     

(Reporting by Nicole Jao and Siddharth Cavale in New York; editing by David Gaffen)
((Email: Nicole.Jao@thomsonreuters.com; Twitter/X: @ByNicoleJao; Phone: +1 646 540 2216))