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Tuesday, August 18, 2020

EPA May Not Issue Decisions on Small Refiner Waivers Until After Elections

EPA appears poised to not make any public announcement on its decisions relative to gap-year small refinery exemptions (SREs) under the Renewable Fuel Standard (RFS) until after the November elections.

EPA Administrator Andrew Wheeler last week in Kansas and in Wisconsin made statements indicating the issue was complicated and that the agency had only started its analysis of the recommendations on SREs that were sent to the agency from the Department of Energy (DOE). He also questioned whether refiners could really claim being financially damaged by the waivers in 2012 or 2013 if they are still in business today.

The SREs are one issue but the other matter still to be resolved is the 2021 biofuel and 2022 biodiesel Renewable Volume Obligations (RVOs), another issue that could be delayed until later this year. Wheeler last week commented that there is great uncertainty on the gasoline demand front due to the COVID-19 situation and that EPA is reworking its proposed levels.

While the law requires EPA to finalize the plans by November 30, that deadline has been missed in the past.