Major US oil refiners' association sues over biofuel regulations.

The American Fuel & Petrochemical Manufacturers association is suing the EPA over stringent biofuel regulations, which they argue will significantly increase compliance expenses. The association fears that these mandates surpass current domestic capabilities, potentially triggering a surge in imports and draining the Renewable Identification Number (RIN) reserve.

A lawsuit has been filed by the American Fuel and Petrochemical Manufacturers, a US refiners' trade group, against the EPA's biofuel regulations, claiming the rules will lead to significantly higher compliance expenses and fuel costs.

A lawsuit has been filed in the D.C. Circuit Court on Friday seeking judicial review of the EPA's finalized Renewable Fuel Standard mandates. These mandates, established in late March, obligate major US oil refiners to either incorporate billions of gallons of ethanol and other biofuels into their products or purchase Renewable Identification Numbers (RINs) credits.

The expense of adhering to the Renewable Fuel Standard has reached an unprecedented level, according to a statement from CEO Chet Thompson, who characterizes the current mandates as the most substantial and costly iteration of the RFS under President Donald Trump's presidency so far.

The Environmental Protection Agency has chosen not to address current lawsuits directly.

Compliance with new biofuel regulations is projected by the AFPM to incur expenses exceeding $106 billion over a two-year period, translating to an added cost of 26-35 cents per gallon for each unit of gasoline and diesel sold in the US.

The trade group asserts that the imposed mandates surpass current U.S. production capacity, potentially forcing refiners to import fuel and feedstocks, thereby increasing costs that would be subsequently passed on to consumers. The agency has set biodiesel and renewable diesel volume requirements at a level 60% higher than last year's standards.

Rapid compliance with new biofuel regulations is putting a strain on the Renewable Identification Number (RIN) market, threatening depletion by 2027.

Complying with the Renewable Fuel Standard (RFS) without a solvent RIN bank would necessitate a reduction in the volume of transportation fuel sold to the US market, according to the American Fuel & Petrochemical Manufacturers.

Last week saw record-breaking prices for 2026 ethanol and biodiesel RINs. Analysts note that in April, just over 690 million biodiesel RINs were generated, leaving a substantial gap of around 225 million credits short of the monthly target.