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August 23, 2019

EPA IG Asked To Investigate Exemptions From RFS

Lynn L Bergeson

By Lynn L. Bergeson

On August 21, 2019, Iowa Democratic Representative Cindy Axne asked the U.S. Environmental Protection Agency’s (EPA) Inspector General (IG) to investigate how EPA decided to grant the exemptions from the Renewable Fuel Standard (RFS) requested by oil refiners. EPA approved 31 petitions for waivers from the 2018 requirements.  Lawmakers are not pleased at what appears to be EPA favoring the oil industry. Hence, Representative Axne’s call for an IG investigation into how EPA decided to expand the number of waivers it issued since President Trump came into office. Representative Axne held a press conference on August 21, 2019, at Southwest Iowa Renewable Energy, an ethanol producer in Iowa.  This is the same plant where Trump touted his action expanding sales of 15 percent ethanol.
According to Reuters, Trump is seeking to mollify corn farmers who are incensed over the exemptions. He personally approved EPA’s decision to go ahead with the waivers, but in a cabinet meeting, Trump told his staff to figure out a way to pacify the farmers.  Alarmingly, and according to a refinery industry source, the President also asked EPA Administrator Andrew Wheeler if he could take the exemptions back; he was told he could not.
Citing data from the Energy Information Administration (EIA), EPA stated the United States had been setting records for both ethanol production and exports. “There is zero evidence that EPA’s Congressionally mandated small refinery exemption program, which provides regulatory relief to small refineries around the country, has had any negative impact on domestic corn ethanol producers,” EPA said in a statement. Nonetheless, POET, the largest U.S. ethanol producer, has idled an Indiana plant due to the waivers. “Our industry invested billions of dollars based on the belief that oil could not restrict access to the market and EPA would stand behind the intent of the Renewable Fuel Standard,” POET CEO Jeff Broin said in a statement. “Unfortunately, the oil industry is manipulating the EPA and is now using the RFS to destroy demand for biofuels.”