Trump Intervention Delaying EPA Biofuel Waiver Action, Sources Say

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July 11, 2019

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by Humeyra Pamuk (Reuters) U.S. President Donald Trump’s request for a review of the administration’s expanded use of biofuel waivers for oil refiners is holding up its decisions on 2018 applications, according to three sources familiar with the matter, two of whom said Trump may soon host a meeting on the issue.

Trump had ordered (here) members of his Cabinet to review the controversial waiver program, which exempts small refiners in financial turmoil from their obligation to blend ethanol into gasoline, last month after hearing from farmers angry about the issue during his recent Midwest tour.

Since Trump took office, the Environmental Protection Agency has more than quadrupled the number of waivers it has granted to refiners, saving the oil industry hundreds of millions of dollars, but enraging another key constituency - corn growers - who claim the move threatens ethanol demand.

Since Trump’s request for a review, the EPA has been scrambling to come up with a solution to move forward with 40 pending applications for the waivers, called Small Refinery Exemptions or SREs, covering 2018.

“The SRE decision is being held up because the President wants to have this conversation,” one of the sources familiar with the issue said.

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Small refineries owned by giants like Exxon Mobil and Chevron Corp, along with a facility owned by billionaire investor Carl Icahn have secured waivers from Trump’s EPA, according to Reuters reporting.

Trump’s request that Cabinet members, including Agriculture Secretary Perdue, help hash out a fix to the waiver program has become a source of concern for lawmakers representing oil refining states. Perdue has often publicly criticized the EPA’s administration of the waiver program, siding with farmers.

Last week, Republican senators representing oil states wrote to Trump asking him to keep Perdue away from any decision-making process over the petitions. Louisiana Senator John Kennedy also wrote to Perdue saying he will block confirmation of agency nominations until Perdue “stops interfering.” READ MORE

Trump Defends Refinery Waivers By Noting Expanded Ethanol Sales (Bloomberg Quint)

Ethanol Leader Criticizes EPA Over New Volume Obligations (AgPro)

Backers push to lift hold on USDA nominees (E&E News)

Trump’s Civil War Between King Corn And The Refineries (Hot Air)

Why Trump’s Approach To Renewable Fuel Mandates Is A Win-Win For Farmers And Refineries (The Federalist)

Trump's energy policy is the real deal -- and it's green (WND)

Giving In to Big Corn--Consumers will suffer the hangover from the feds’ ethanol binge. (City Journal)

Tweedle Dee and Tweedle Dum of Ethanol Opposition At It Again (The Auto Channel)

Excerpt from Bloomberg Quint: Because of the squabbling among the EPA, USDA and Department of Energy, said one person briefed on the situation, the matter ultimately may have to be resolved by the president. In recent weeks, both oil and agricultural groups have taken to Trump’s favorite television news source, Fox News, among other outlets to make their cases on the waivers. Ernst, along with other Midwestern lawmakers, including Senator Deb Fischer, a Nebraska Republican, have introduced legislation to increase transparency in the waiver process. READ MORE