Grassley Seeking Info From Energy Dept. on Small Refiner Exemptions

Senate Finance Committee Chairman and noted biofuel backer Charles Grassley, R-Iowa, is seeking more information from the Department of Energy (DOE) on the criteria they are using to make recommendations to EPA on small refiner exemptions under the Renewable Fuel Standard (RFS). Grassley said in an April 10 letter to Energy Secretary Rick Perry that he wanted more information on why the number of small refiner exemptions under the RFS surged for the 2016 and 2017 compliance years, particularly when DOE has indicated that their criteria for evaluating those requests has not changed since 2011. Citing litigation that revealed out of 48 applications for the 2016 and 2017 compliance years, DOE gave the applicants in at least half of those cases a viability score of zero. "This seems to indicate that compliance costs with the RFS had little to no impact on the small refinery's ability to stay competitive and profitable," Grassley stated. Grassley said he wants to know if DOE has changed criteria on small refiner exemptions, the interpretation of that criteria, the methodology or any other significant aspect of how it makes recommendations to EPA for smaller refiner exemptions. He also asked if DOE is aware of instances when they recommended no exemption or a partial exemptions, only to have EPA grant an exemption anyway. In a 2011 Small Refinery Study, DOE said they would they would make a recommendation "of disproportionate impact" if both indices they use were greater than a rating of one. "How does DOE's recommendation for a partial exemption to a small refinery with a Viability Index of 0.0 square with the statute's requirement that the exemption can be extended only if the refinery is subject to a 'disproportionate economic hardship' from compliance with the RFS," Grassley asked.