USDA Stands With Ethanol on Waivers
by Todd Neeley (DTN The Progressive Farmer) Federal Agencies Disagree on Accounting for Small-Refinery Waivers in 2019 — EPA has made clear it is not considering public comments on small-refinery waivers and how they affect the Renewable Fuel Standard. But a USDA memorandum sent to EPA on Aug. 15 disputes the EPA’s claim the waivers are beyond the scope of the latest RFS volumes proposal.
What’s more, USDA’s Office of the Chief Economist raised concerns about the EPA electing not to account for small-refinery waivers in the latest RFS blend volumes proposal for 2019.
Publicly, EPA has touted the latest RFS proposed blending volumes for 2019 as proof the agency continues to promote the expansion of biofuels production, all while detailing the number of gallons waived. In addition, the EPA stated in its proposal that there are zero requested waivers for 2019 volumes.
The public-comment period for the 2019 blend volumes ended on Aug. 17. EPA’s proposed blend volumes do not factor in the roughly 2.25 billion gallons of biofuels waived in 2016 and 2017. Many commenters suggested EPA could come up with an estimate of potential small-refinery exemptions based on the waiver volumes granted for 2016-17. Instead, EPA factored in zero waiver volumes for 2019.
In a memo to the EPA, USDA’s Office of Chief Economist said EPA should factor in an estimate of waived gallons in 2019 when finalizing the blend volumes for 2019.
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Thirty-nine senators wrote EPA Acting Administrator Andrew Wheeler on Thursday largely about issues with biodiesel blends. The letter did say, however, “It is critical that EPA appropriately account for any small-refiner economic hardship exemptions that it reasonably expects to grant during the 2019 compliance year in the final rule, or EPA will not be able to fulfill its duty to ensure RVOs are met.”
Wheeler said during recent testimony in Congress that the agency would be providing an online “dashboard” with more details about small-refinery waivers.
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EPA has taken heat on how it defines “hardship” when it granted waivers. The ethanol industry and others have maintained the waivers were not designed for oil companies that report billions of dollars in profits. READ MORE
Listen: Trump promises wider ethanol sales as trade wars hit farmers (Platts)
EPA chief vows to offer ‘certainty’ (Wallace’s Farmer)
RFS Growth Welcomed News, But Small Refinery Waivers Threaten Industry (National Biodiesel Board/Biodiesel Magazine)
