CVR Energy, Inc. operator of the Wynnewood refinery in southern Oklahoma says it’s been granted hardship relief under its obligations under the Renewable Fuel Standard, as recently announced by the Environmental Protection Agency.
The Renewable Fuel Standard (RFS) is an American federal program that requires transportation fuel sold in the United States to contain a minimum volume of renewable fuels. It originated with the Energy Policy Act of 2005 and was expanded and extended by the Energy Independence and Security Act of 2007.
These regulations established rules for fuel suppliers, created the Renewable Identification Numbers (RIN) system for compliance and trading credits, and rules for waivers. The EPA calculates a blending standard for each year based on estimates of gasoline usage created by the Department of Energy’s Energy Information Administration.
The relief applied to CVR’s subsidiary, Wynnewood Refining Company, LLC for WRC’s 2017 and 2018 compliance periods and granting 100 percent waivers for WRC’s 2019 and 2021 compliance periods and 50 percent waivers for its 2020, 2022, 2023 and 2024 compliance periods.
“Based on this decision, WRC currently estimates its obligation for the 2020 through 2024 compliance periods could be reduced by more than 300 million renewable fuel credits, known as Renewable Identification Numbers,” stated the company
“WRC may also receive previously retired RINs for the earlier compliance periods that could further reduce its obligation by over 100 million RINs.”
CVR went on to indicate that the reductions taken together could reslt in an estimated remaining 100 million RIN obligation for the pre-2025 compliance periods.
The company stated it is also in the process of evaluating the decision document, its estimates and WRC’s expected response in connection therewith, including impacts to the financial statements of WRC and CVR Energy.