CVR Energy provides update on EPA small refinery exemption decision

CVR Energy (CVI) announced that the Environmental Protection Agency issued a decision document to its subsidiary, Wynnewood Refining Company, affirming the validity of its previous grant of WRC’s petitions for small refinery hardship relief under the Renewable Fuel Standard for WRC’s 2017 and 2018 compliance periods and granting 100% waivers for WRC’s 2019 and 2021 compliance periods and 50 percent waivers for its 2020, 2022, 2023 and 2024 compliance periods. Based on this decision, WRC currently estimates its obligation for the 2020 through 2024 compliance periods could be reduced by more than 300M renewable fuel credits, known as Renewable Identification Numbers. WRC may also receive previously retired RINs for the earlier compliance periods that could further reduce its obligation by over 100M RINs. These reductions taken together could result in an estimated remaining 100M RIN obligation for the pre-2025 compliance periods. CVR Energy is in the process of evaluating the decision document, its estimates and WRC’s expected response in connection therewith, including impacts to the financial statements of WRC and CVR Energy.