Biofuel Groups File Petition Challenging Trump Administration's Small-Refinery Waivers

October 24, 2019

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by Stephanie Kelly (Reuters) Biofuels groups have filed a petition in the U.S. court of appeals in Washington against the Environmental Protection Agency, challenging the agency’s process for granting refineries exemptions to the nation’s biofuel blending mandates, the groups said Wednesday.

The petition, filed by groups such as the Renewable Fuels Association, the American Coalition for Ethanol, and Growth Energy, challenges the EPA’s process for granting waivers to 31 oil refineries for 2018. The biofuels industry has criticized the Trump administration for expanding the number of waivers granted in recent years, claiming the exemptions undercut demand for fuels such as corn-based ethanol.

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“EPA continues to implement the Renewable Fuel Standard program in accordance with the Clean Air Act, taking into consideration additional direction from Congress, recommendations from Department of Energy, and relevant court decisions,” EPA spokesman Michael Abboud said. READ MORE

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Excerpt from Renewable Fuels Association: A coalition of renewable fuel and agricultural trade organizations filed a petition Tuesday afternoon with the Court of Appeals for the District of Columbia Circuit, challenging the process by which the U.S. Environmental Protection Agency (EPA) exempted certain unknown small refineries from their respective Renewable Fuel Standard obligations for 2018. The coalition includes the American Coalition for Ethanol, Growth Energy, National Biodiesel Board, National Corn Growers Association, National Farmers Union, and Renewable Fuels Association.

Unlike previous years, EPA’s entire decision document was only two pages long, the coalition noted in their petition. In these short two pages, EPA purported to resolve 36 pending petitions for disproportionate economic hardship exemptions—a decision that exempted small refineries from having to blend almost one and a half billion gallons of renewable fuel.

The brief document does not reveal any details and contains only the most bare-bones reasoning for EPA’s decision. Further, the decision did not transparently address whether any of the small refineries were eligible to receive extensions of their exemptions and did not include an analysis of ‘disproportionate economic hardship’, as the statute envisions.

“Even as the Trump Administration indicates it is taking steps to account for future small refinery exemptions, the coalition remains concerned that EPA’s abuse of the small refinery exemption program diverges from the spirit and letter of the Clean Air Act,” the coalition stated. “From a substantive and procedural perspective, this is not the way for a federal agency to make such a momentous decision.”

A copy of the coalition petition is available here. READ MORE