Corn Comments: Small Refinery Exemptions

Welcome to Corn Comments, I’m Jay Esser from Redfield. We are brought to you by the South Dakota Corn Utilization Council, a volunteer group of farmers who promote corn marketing in this state, the US and around the globe.

Recently, the EPA granted a number of Small Refinery Exemptions, which allow eligible refineries that show disproportionate economic hardship to forgo their Renewable Volume requirement under the Renewable Fuel Standard for a particular year. 

Requiring 100% reallocation of Small Refinery Exemptions granted would increase ethanol consumption in a higher-blend scenario, such as year-round, nationwide E15, as compared to a lesser percentage of reallocation.  We understand that some in big oil do not support full reallocation of Small Refinery Exemptions.  Reallocation has the potential to impact future corn grind through decreased ethanol consumption both here and outside of our state.  In-state demand for our farmers’ corn through ethanol consumption remains an important priority for the South Dakota Corn Utilization Council.