Biofuels groups are disappointed with yesterday’s Small Refinery Exemption decision from EPA. The agency denied 36 exemption requests from the Renewable Fuel Standard (RFS) for 2018 but simultaneously granted compliance relief for 31 refiners. Iowa Renewable Fuels Association Executive Director Monte Shaw says that means they don’t have to comply with their 2018 RFS obligations and the end result does nothing to build demand.
He says the silver lining is EPA set a precedent by reaffirming the 10th Circuit Court’s ruling that EPA lacked the authority to grant the exemptions in the first place. Shaw says this rationale should be immediately applied to the other 60-plus RFS exemption requests that remain pending..
Shaw says the administration has the ability to build ethanol demand while helping with the current energy crisis, including granting year-round approval of E15.
EPA stated the waiver requests they denied were a result of applying the new interpretation of the Clear Air Act SRE Provisions.
