EPA confirms 33 small refinery waiver applications

The Environmental Protection Agency (EPA) was considering applications to waive 2017 federal fuel blending requirements from 33 refiners this month, up from the 29 it confirmed in April, the agency said today.

Applications increased as EPA faced intense pressure from agribusinesses and its allies over the record number of Renewable Fuel Standard (RFS) waivers the agency had already approved. Those groups have insisted EPA redistribute obligations that totaled 2.25bn credits in 2016 and 2017 to other refiners.

EPA said it would not accept comments on such a change in blending volumes for 2019 that the agency proposed today.

"Any such comments will be deemed beyond the scope of this rulemaking," the agency said.

RFS requires refiners, importers and other companies to each year ensure minimum volumes of renewables blend into the US transportation supply. The program allows hardship waivers for individual refineries that process less than 75,000 b/d of crude a year. The Department of Energy and EPA must approve the waiver, and have historically limited their use.

The agency has not transferred waived volumes to other obligated parties. The waivers instead function as an overall reduction to annual blending mandates.

EPA confirmed to Argus in April that it granted exemptions to a record 25 refineries for 2017, swiftly infuriating renewable fuels and agribusiness supporters. The agency cited a court opinion issued last fall that found EPA overstepped its authority by considering a refinery's profitability to gauge its difficulty complying with the program.

But renewable fuel boosters instead saw it as another strike by EPA administrator Scott Pruitt, who they say was too eager to ease rules for the refining industry.

Pruitt needed to reduce the waivers or resign, US senator Chuck Grassley (R-Iowa) said in May.

"I am sick and tired of messing around on this, anymore," Grassley told reporters.

Renewable fuel groups insisted the agency address the unprecedented volume of 2017 waivers.