The proposed amendments would particularly affect the renewable volume obligations assigned to small refineries. Under the new regulations, the annual obligation for small refineries would be based on reduced percentages of their annual gasoline and diesel production, which could ease compliance burdens and encourage greater participation in the renewable fuel market. Proponents argue that this is a necessary step to support small refining operations that play a crucial role in the energy sector, especially in regions heavily reliant on these facilities.
Summary
SB2390, known as the 'Small Refinery Relief Act of 2023', aims to amend the Clean Air Act specifically to enhance the opportunities for small refineries to earn credits under the Renewable Fuel Program. The bill introduces provisions that allow small refineries to generate credits at higher rates for blending gasoline with ethanol and biodiesel, thus offering a financial incentive for compliance with renewable fuel obligations. These changes are seen as a response to the challenges faced by small refineries in meeting regulatory demands while remaining economically viable.
Contention
Despite its intended benefits, SB2390 has sparked a range of opinions among stakeholders. Supporters, including some lawmakers and industry representatives, assert that the bill would secure the future of small refineries by providing them with more manageable regulatory conditions. However, opponents express concerns that the bill may undermine broader environmental goals by allowing increased fossil fuel usage under the guise of supporting small businesses. Environmental groups warn that such incentives could set back efforts to combat climate change and may dilute the effectiveness of the Renewable Fuel Program.