Farm Progress

EPA catches heat for latest RFS moves

Double the normal amount of ‘hardship’ waivers given to oil refiners.

Ben Potter, Senior editor

April 5, 2018

2 Min Read
photosbyjim/Thinkstock

Fresh concerns over recent EPA actions hit the agriculture industry this week after learning the agency has exempted 25 so-called “hardship exemptions” to oil refineries freeing them from some mandates imposed by the U.S. Renewable Fuel Standard. That’s roughly double the amount it has handed out in recent years.  

What’s more, the waivers are typically awarded to smaller refineries (production of 75,000 or fewer barrels per day), but among the latest recipients was Andeavor, which cleared $1.5 billion in net profits last year. 

That news sent RIN biofuel credit prices tumbling as low as 30 cents Wednesday, the lowest they’ve traded since February 2017. It also riled up several agriculture industry groups, not to mention U.S. Sen. Chuck Grassley, R-Iowa. 

Grassley complained in a statement to Reuters Tuesday that giving Andeavor “a free pass when other companies are required to follow the law of the land isn’t just unfair, it may be illegal … it would also amount to a massive government handout to a big corporation that made billions in profits last year.”

The National Corn Growers Association was one of several industry groups that also reacted negatively, with association president and North Dakota farmer Kevin Skunes calling the move “unacceptable.” 

“Granting these waivers significantly reduces the number of gallons of fuel blended with ethanol hurting rural economies and the nation’s corn farmers. When refiners aren’t meeting their blending obligations, corn farmers pay the price,” he said.

Skunes urged EPA Administrator Scott Pruitt to live up to prior promises to honor the “text and spirit” of the RFS, and do so openly and transparently.

And in a letter sent to Pruitt, Growth Energy also asked for a full stop on issuing waivers until EPA conducts a “full, transparent comment process” that involves all stakeholders.

“EPA appears to be operating under the cover of night in a secretive process where the agency acts as judge, jury, and executioner to effectively reduce the overall demand for biofuels in this country absent any public discourse,” said Growth Energy CEO Emily Skor. 

Six agriculture groups had reached out to President Donald Trump in February to defend the RFS, calling it a “strong engine driving the rural economy.” Managers from 150 biofuel manufacturing plants across the U.S.sent the President a separate statement in March, also calling for support of the program.

EPA has not yet released a statement concerning these waivers. Pruitt, embattled by other unpopular moves and potential scandals within the agency, has focused his energy elsewhere this week by rolling back Obama Administration-era greenhouse gas emissions standards. EPA says its overall “back to basics” agenda is focused on protecting the environment and developing sensible regulations that allow economic growth. 

About the Author(s)

Ben Potter

Senior editor, Farm Futures

Senior Editor Ben Potter brings two decades of professional agricultural communications and journalism experience to Farm Futures. He began working in the industry in the highly specific world of southern row crop production. Since that time, he has expanded his knowledge to cover a broad range of topics relevant to agriculture, including agronomy, machinery, technology, business, marketing, politics and weather. He has won several writing awards from the American Agricultural Editors Association, most recently on two features about drones and farmers who operate distilleries as a side business. Ben is a graduate of the University of Missouri School of Journalism.

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