Bio-fuels association files a lawsuit against the EPA for renewable fuel waiver

Frustration over renewable fuel waivers escalates as the advanced bio-fuels association files a lawsuit against the agency. RFD-TV’s Sarah Mock reports on the motivation behind the Issue. A refinery owned by billionaire Carl Icahn received an EPA waiver excusing it from obligations under the RFS and the advanced bio fuels association wants to know why. “Given the fact that we now know that he gave the Oklahoma refiner CVR an exemption who had never previous got one and that Mr. Icahn has been close and a contributor to Mr. Trump, we wanted to know on what grounds were these being done. We thought a federal judge would be the best way to get that answer.” The waiver excused Icahn's company, CVR, from tens of millions of dollars used for requirements to blend biofuels or buy renewable fuel credits, known as RINs. McAdams says Pruitt’s EPA has nearly tripled the number of waivers issued under the Obama administration., Creating a fallout in the industry. “We have seen a very significant drop in the value of the D6 RIN since the first article came out from reuters concerning these exemptions that have been granted by EPA to quote small refiners end quote. Now the refineries seem to be larger than they were in the past, and the exemptions seem to be far more plentiful.” With RIN prices cut in half over recent weeks… this could lead to less demand for ethanol and eventually lower commodity prices. Growth Energy CEO Emily Skor called this, “just one more example of the EPA taking money out of the pockets of american farmers and undermining President Trump’s promise to rural communities. But McAdams says farmers aren’t the only victims. He describes it as fundamentally inequitable. "We felt that the best way to get in front of this was to get in front of a federal judge and ask why don't we know how this process works and how is it that EPA continues to bill the american driving consumers for the cost of this program while they're letting people off the hook and not telling us why they're letting them off the hook?" McAdams says one of the goals is understanding the full cost of these waivers "What does that do to the whole program? Does it disincentivize people from blending? Does it lead to less blending? We don't know because we haven't seen this application of the law done the way it's been done by this administration." McAdams says the EPA has not responded to requests for information, including to a letter sent by 13 senators requesting explanations of the waiver process. For RFD-TV, I’m Sarah Mock in Washington. Senators are also fighting for other moves in the biofuels industry… late last they sent a letter to the EPA demanding a timeline for the implementation of the president’s pledge to lift regulations against summer E-15 sales Michael Mcadams, Advanced Biofuels Association Sarah Mock Washington Bureau Chief, RFD-TV @Sarah_K_Mock