Reuters: EPA Shifted Small Refiner Waiver Actions Before Court Ruling

EPA took action to grant more small refiner exemptions (SREs) under the Renewable Fuel Standard (RFS) even before a court ruling was issued that the agency has cited in defense of the broader use of the SREs, according to a report from Reuters based on court documents and an interview with a former EPA official. The Advanced Biofuels Association filed documents in court that show EPA changed its policy prior to May 4, 2017, telling a refinery in a letter "we are changing our approach" to the SREs, allowing exemptions even if they were not "significantly impaired" by compliance. The U.S. Court of Appeals ruled in August 2017 that the agency had been too strict in its process of SREs, a ruling that officials have cited as a reason for the increased use of SREs – EPA granted 35 for the 2017 compliance year and there are currently 40 pending for the 2018 compliance year. Mandy Gunasekara, who retired as principal deputy assistant administrator at the EPA’s Office of Air and Radiation this year, told the news service former EPA administrator Scott Pruitt opted to put the SRE effort back in play to help the refining industry. The August court case, she noted, was viewed as a "vindication" of EPA's changes, she said. Biofuel backers have complained that the stepped-up use of the SREs has negatively impacted the ethanol industry.