Ethanol

USA: Court suspends EPA exemptions for oil refineries

T&B Petroleum/Broadcast Agro
22/01/2021 19:19
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An appeals court in the United States yesterday suspended (21) three exemptions granted by the Environmental Protection Agency (EPA) to small oil companies, which released them from complying with requirements for mixing ethanol in gasoline. The exemptions, granted on Tuesday night, less than 24 hours from the end of Donald Trump's administration, are suspended until "new court order".

 

The US Renewable Fuels Association (RFA) had filed an emergency motion that the three exemptions had no effect. "The EPA decision will inflict substantial, immediate and irreversible damage" to US ethanol producers, the FRG said in its motion. "This would be devastating for US ethanol producers, many of whom are already close to closing due to the continuing impact of the covid-19 pandemic." According to the RFA, these exemptions represent a reduction in demand for renewable fuels of almost 1 billion liters.

 

Mandatory biofuel blending volumes in the U.S. have not been met because small oil refineries turn directly to the EPA to be released from the requirement, claiming that this causes financial difficulties.

 

In January last year, a court determined that only refineries whose exemption had been extended in each of the years after 2010 could be released from the requirement. In addition, it was decided that the EPA could only grant exemptions to refineries that proved that the requirement mixing biofuels would be the cause of their financial difficulties.

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