Environmental Protection Agency Administrator Scott Pruitt has been under attack for issuing hardship waivers to small oil refineries. At least six refineries, some owned by wealthy parent companies, have received such exemptions within the past year.
A refinery must claim ?disproportionate economic hardships? due to blending obligations outlined in the Renewable Fuel Standard to receive a hardship waiver. Renewable Fuels Association (RFA) executive vice president Geoff Cooper says there is no evidence supporting claims of refineries suffering from economic hardships due to the Renewable Fuel Standard (RFS).
?That has been the justification they have used as they sought waivers from their Renewable Fuel Standard compliance obligations,? Cooper said. ?They?ve said the RFS is causing them economic hardship and one refiner blamed its bankruptcy on the RFS. Unfortunately, EPA Administrator Pruitt has been buying into this argument and granting these exemptions or waivers from RFS compliance. That has had devastating impacts on the ethanol and corn markets.?
Cooper analyzed the first quarter earnings of several publicly traded oil refiners. The companies ranged from refining companies to integrated companies. Cooper?s analysis shows oil refineries have been doing very well, ?reporting very strong profits? in the first quarter. He said in many cases, refineries earned ?double or triple the profits they saw in the first quarter of 2017.?
Administrator Pruitt says his organization is constrained in issuing such exemptions. He adds the waivers are granted objectively, on a facility-by-facility basis.
?We have statutory criteria by which we have to make those decisions. We have to look at the economic challenges,? Administrator Pruitt said. ?The Department of Energy is involved in that. We use their data and make informed decisions based upon their data, and it?s objectively and statutory driven. If the criteria is met, then we have the authority to grant. If the criteria aren?t met, we don?t. I think there?s been a bit of concern that perhaps we are engaging a subjective analysis and that it?s a matter of policy that we?re engaging in the granting of these exemptions, and that?s simply not the case.?
