April 12, 2018
BY The National Biodiesel Board
The National Biodiesel Board submitted a Freedom of Information Act Request aimed at shedding light on small refiner exemptions requested and issued under the Renewable Fuel Standard.
“The EPA’s decision to grant upwards of 25 exemptions, with at least one significant waiver in the dark of night to a large and profitable refiner, raises urgent questions as to what else might be going on behind closed doors,” said Kurt Kovarik, NBB’s vice president of federal affairs. “Transparency and certainty are key to maintaining a competitive market for biodiesel, and it is critical we understand the impact any waivers could have on the industry and fuel choice for consumers.”
NBB requested:
-Any records submitted to EPA in conjunction with a petition for a small refinery exemption pursuant to 42 U.S.C. § 7545(o)(9)(B) for compliance with the 2015, 2016, 2017, and 2018 obligations under the Renewable Fuel Standard.
-Any records summarizing information regarding petitions for a small refinery exemption under 42 U.S.C. § 7545(o)(9)(B) for 2015, 2016, 2017, and 2018, including but not limited to:
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-The number of petitions for a small refinery exemption that EPA has received for each year.
-The number of petitions for a small refinery exemption that EPA has granted for each year.
-The total volume of renewable fuel that would be exempted under petitions for a small refinery exemption that EPA has received for each year.
-The total volume of renewable fuel that will be exempted under petitions for a small refinery exemption that EPA has granted for each year.
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-The name of each refinery that submitted a petition for a small refinery exemption in each year.
-The name of each refinery for which a small refinery petition was granted in each year.
Press coverage has indicated the EPA has granted exemptions to several refineries for the 2016 and 2017 compliance years, including one of the nation’s largest. EPA has apparently granted Andeavor a hardship waiver for its three smallest refineries, while its profits last year were approximately $1.5 billion dollars. At least two other refineries with hundreds of millions of dollars in annual profits appear to have also been granted waivers.
“Large, profitable companies were not intended to be protected through the small refinery exemption,” Kovarik said. “The current absence of transparency is undermining both the intent and benefits, including jobs and rural economic investments, of the effective program.”
The RFS is a federal program that requires transportation fuel sold in the U.S. to contain a minimum volume of renewable fuels. The RFS originated in a bipartisan Congress with the Energy Policy Act of 2005 and was expanded and extended by the Energy Independence and Security Act of 2007.
President Trump on July 4 signed the “One Big Beautiful Bill Act.” The legislation extends and updates the 45Z credit and revives a tax credit benefiting small biodiesel producers but repeals several other bioenergy-related tax incentives.
CARB on June 27 announced amendments to the state’s LCFS regulations will take effect beginning on July 1. The amended regulations were approved by the agency in November 2024, but implementation was delayed due to regulatory clarity issues.
SAF Magazine and the Commercial Aviation Alternative Fuels Initiative announced the preliminary agenda for the North American SAF Conference and Expo, being held Sept. 22-24 at the Minneapolis Convention Center in Minneapolis, Minnesota.
International Sustainability & Carbon Certification has announced that Environment and Climate Change Canada has approved ISCC as a certification scheme in line with its sustainability criteria under its Clean Fuel Regulations.
Legislation introduced in the California Senate on June 23 aims to cap the price of Low Carbon Fuel Standard credits as part of a larger effort to overhaul the state’s fuel regulations and mitigate rising gas prices.