CVR Energy (NYSE:CVI) has made a formal plea to the Biden administration for an overhaul of the renewable fuel credit program. This move aims to limit participant eligibility, marking a renewed attempt at changes that were previously resisted by the last two U.S. presidents.

Arguing that current trading dynamics pose a significant disadvantage to independent and merchant refiners like Coffeyville Resources Refining & Marketing and Wynnewood Refining Company, CVR Energy (CVI) highlights their obligation to meet annual biofuel blending targets. These companies lack sufficient blending capacity to produce tradable RIN credits that are essential for complying with the quotas.

The Environmental Protection Agency, responsible for administering the U.S. Renewable Fuel Standard, presently permits anyone to engage in the program, including entities like fuel retailers operating for profit. CVR Energy (CVI) contends that this inclusivity has resulted in egregious market manipulation, leading to a surge in RIN prices. This surge disproportionately impacts small oil refiners and drives up fuel costs for consumers.

The company’s request comes in the wake of a November ruling by a federal appeals court, which dismissed a portion of the EPA’s rationale for the current approach. The court deemed it “implausible” to assume that all refiners can transfer their RIN costs to customers through fuel prices.