EPA SRE Waivers Denied

The Environmental Protection Agency will have to again review requests for dozens of exemptions to an ethanol mandate.

The U.S. Court of Appeals for the D.C. Circuit issued an order on July 26th vacating most of the EPA’s 2022 denials of “hardship” waivers from the ethanol blending mandate presented by small refiners for the 2018 compliance year. 

The decision is viewed as a win for the refining industry, which has long opposed federal requirements to add biofuels to the nation’s gasoline supply. The EPA can grant waivers to refiners who demonstrate that blending biofuels causes undo harm.

Three ethanol trade associations - the American Coalition for Ethanol, Growth Energy, and the Renewable Fuels Association - issued a joint statement.

“EPA’s decision in 2022 to deny the petitions was well-reasoned, based on sound economic analysis, and consistent with the Clean Air Act and the objectives of the Renewable Fuel Standard,” 

The 2022 waivers covered 36 small refiners and blenders of gasoline in the United States during the 2018 production year. The number of gallons of biofuels unblended due to waivers had been rising from 2013 through 2017. There have been no waivers granted since 2017.

The consumption of gasoline in the United States peaked in 2018 at 392 million gallons per day, pegging total consumption at 145 billion gallons for the year. By 2023, gasoline consumption was 4 percent lower than 2018.

The exempted gallons of 2018 biofuels are estimated to be less than 10 percent of 2018 biofuel production.

The EPA is reviewing the decision.

For Market to Market, I’m Peter Tubbs.

Contact: Peter.Tubbs@iowapbs.org