The Environmental Protection Agency announced a decision to exempt some small refineries from blending biofuels in their supplies at levels required under the Renewable Fuel Standard. Out of the 175 outstanding petitions, the EPA granted full exemptions to 63, partial exemptions to 77, and denied another 28, while determining seven were ineligible.
National Corn Growers President Kenneth Hartman, Jr., said the agency has taken a big step toward resolving a stubborn issue that has lingered without resolution for too many years. Small refineries are allowed to submit petitions to the EPA each year, requesting hardship exemptions from requirements under the Renewable Fuel Standard. The standard was signed into law in 2005 and requires refiners to include ten percent biofuel blends in their fuel production.
“With government reports projecting record corn yields this year, we want the Renewable Fuel Standard implemented precisely as it was intended,” Hartmann Jr. said.
The Environmental Protection Agency issued decisions on 175 small refinery exemptions that had lingered for years.
Emily Skor, CEO of Growth Energy, said the more than 140 granted exemptions don’t give farmers and biofuel producers the certainty that they need. “It’s imperative that EPA reallocates each and every exempt gallon in a forthcoming rule,” said Skor.
While the Renewable Fuels Association says it doubts the refineries were truly experiencing “disproportionate economic hardship” due to the RFS, President Geoff Cooper said, “We are pleased to see EPA taking an approach to implementation of these exemptions that’s minimally disruptive to the marketplace.”
Clean Fuels Alliance America said EPA’s “course correction” on exemptions creates fresh uncertainty for America’s farmers and biodiesel, renewable diesel, and SAF producers.
Devin Mogler, President and CEO of the National Oilseed Processors Association, said his group urges EPA to finalize a reallocation policy that fully accounts for the lost gallons.
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