US EPA allows winter gasoline sales through May 20, extends RFS deadline

Washington — The US Environmental Protection Agency Friday relaxed rules for summer gasoline standards to allow for sales of winter-grade gasoline at least through May 20 to account for a glut of the fuel amid plunging demand as US drivers stay home.

The agency also said it planned to give small refineries more time to meet the US biofuel mandate, but gave no other details.

Gasoline volatility rules require fuel suppliers to switch from winter grades to lower-volatility summer grades May 1. More than a dozen states asked EPA to waive the standards to allow distributors to work through excess winter-spec fuel still in storage.

"By waiving the low volatility and blending limitations through May 20, EPA will ensure a steady supply of gasoline," EPA said in a statement. "EPA will continue to monitor the adequacy of gasoline supplies and, should conditions warrant, may modify or extend this waiver at a later date."

SMALL REFINERY WAIVERS

EPA said in the same statement that it does not plan to "revisit or rescind" any past waivers to the Renewable Fuel Standard despite a recent court order challenging the Trump administration's widespread use of the exemptions.

The agency added that it plans to extend the RFS compliance deadline for small refineries "to provide them with additional flexibility," but it gave no other details.

EPA said the actions fit with the agency's current focus to protect employees and ensure public health during the coronavirus pandemic. "Therefore, investigating and initiating enforcement actions against small refineries that were previously subject to an exemption is a low priority for the agency," it said.

EPA had until Tuesday to appeal a January 24 ruling by the US Court of Appeals for the 10th Circuit, which said the agency "abused its discretion" when issuing the hardship waivers to refineries that process less than 75,000 b/d.

If EPA follows the ruling, virtually all but a handful of exemptions would be invalidated, according to S&P Global Platts Analytics.