Tyler Chalfant | August 21st, 2019
On Friday, the U.S. Environmental Protection Agency granted waivers from federal biofuel law to 31 small oil refineries. Members of Congress from Iowa on both sides of the aisle have criticized this move for hurting the state’s renewable fuel industry.
Under the Renewable Fuel Standard, refineries are normally required to blend biofuels like ethanol into their gasoline, or to purchase credits from those that do so. However, exemptions are available for small refineries that can prove that compliance with the rule would cause significant financial strife.
From 2013 to 2015, the EPA granted no more than eight waivers per year, but since Trump took office, the number of waivers has quadrupled. This latest round brings the total to 85 since 2016, and includes refineries owned by ExxonMobil and Chevron.
13 ethanol plants have recently shut down, three of them permanently, in part due to the loss in demand caused by these waivers. The country’s largest ethanol producer POET blamed the EPA as it was forced to close an Indiana plant on Tuesday.
Senator Chuck Grassley accused the government of not keeping its word and “screwing the farmer when we already have low prices for grain.” Iowa is the leading producer of corn and ethanol production in the U.S., and the industry supports nearly 43,000 jobs in the state.