Fuel STAR Act of 2026

Protection for Small Refineries: Under Section 2, paragraph (9), small refineries (defined as those with an average aggregate daily crude oil throughput not exceeding 10,000 barrels and starting production on or after January 1, 2007) can receive exemptions from compliance requirements due to disproportionate economic hardship. Section 2(a)(3)(A)(iii).

Streamlined Exemption Process: The bill introduces a rule where if the Administrator fails to respond to a petition within a 90-day period, the petition is considered granted. Section 2(a)(3)(B)(iii).

Specific Economic Protections: Small refineries can use specific economic factors to demonstrate hardship, such as the cost of credits relative to revenue, the risk of a refinery ceasing to operate, or whether they are building infrastructure to blend biofuels. Section 2(a)(3)(B)(ii).

Fuel Availability: The bill updates regulations regarding fuel blends containing between 10 and 15 percent denatured anhydrous ethanol. Section 2(b)(1).

Volume Restrictions: The bill mandates that the applicable volume for renewable fuel that is not advanced biofuel cannot exceed projected annual domestic consumption of ethanol blended fuel. Section 2(a)(1).

Restrictions on Credit Usage: While the bill allows for the extended duration of certain credits generated between 2020 and 2022, it limits the amount of these specific credits a person can use to no more than 20 percent of the credits used to demonstrate compliance in a calendar year. Section 2(a)(2)(B).

Limitations on Holding Company Exemptions: The Administrator is prohibited from approving petitions for small refineries under the control of a holding company if the resulting total exempted volume exceeds certain production thresholds or capacities. Section 2(a)(3)(B)(v).