The Small Business Administration plans to revise its definition of small U.S. petroleum refiners.
SBA's current standard is no more than 50,000 b/d and 1,500 employees. Last May it proposed eliminating the capacity definition, using only the 1,500 employee guideline. After reviewing industry's comments on that idea, SBA has proposed using a definition of 75,000 b/d capacity and 1,500 employees. Most of those responding argued the capacity limit should be retained and raised.
SBA noted that since it established the current standard in 1975, the number of small refiners and their share of the industry's refining capacity have steadily diminished.
It said raising the definition to 75,000 b/d should permit small refiners that are now close to the current limit to expand their plants or combine with other small refiners without losing their small business status. It believes such a combination may help ease cost pressures of environmental compliance on small refiners.
SBA said refiners with less than 75,000 b/d of capacity are mainly operating as refiners rather than substantially as retail marketers or as petroleum explorers owning a refining operation.
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