EPA grants CVR Energy unit renewable fuel waivers, reducing obligations

The Environmental Protection Agency granted Wynnewood Refining Company, a subsidiary of CVR Energy Inc. (NYSE: CVI), waivers under the Renewable Fuel Standard program that could reduce its renewable fuel credit obligations by more than 400 million credits.

The EPA decision, issued August 22, affirmed previous grants for 2017 and 2018 compliance periods and provided 100 percent waivers for 2019 and 2021 periods. The agency granted 50 percent waivers for 2020, 2022, 2023 and 2024 compliance periods.

Wynnewood Refining estimates the decision could reduce its obligation by more than 300 million Renewable Identification Numbers for the 2020-2024 compliance periods. The company may receive previously retired RINs for earlier periods that could further reduce obligations by over 100 million RINs.

These combined reductions could result in an estimated remaining 100 million RIN obligation for pre-2025 compliance periods, according to the company statement. CVR Energy said it is evaluating the decision document and potential impacts to financial statements.

The Renewable Fuel Standard requires refiners to blend renewable fuels into petroleum products or purchase credits to meet mandated volumes. Small refineries can petition for hardship exemptions from these requirements.

CVR Energy operates as a diversified holding company engaged in renewable fuels, petroleum refining and marketing, and nitrogen fertilizer manufacturing through its interest in CVR Partners.

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