EPA may release new data on small refinery biofuel waivers: sources

U.S. Environmental Protection Agency (EPA) Acting Administrator Andrew Wheeler addresses staff at EPA headquarters in Washington, U.S., July 11, 2018. REUTERS/Ting Shen
U.S. Environmental Protection Agency (EPA) Acting Administrator Andrew Wheeler addresses staff at EPA headquarters in Washington, U.S., July 11, 2018. REUTERS/Ting Shen

Thomson Reuters

NEW YORK (Reuters) - The U.S. Environmental Protection Agency (EPA) may release new data on Thursday related to its program to exempt small refineries from annual biofuels blending requirements, according to four sources familiar with the plans.

EPA Acting Administrator Andrew Wheeler had been under pressure from biofuels trade groups and lawmakers for increased transparency into the waiver program, which the agency has recently expanded to help the oil industry, according to the sources. The biofuels industry worries the waiver program is undermining demand for corn-based ethanol, and is being mismanaged by the Trump administration's EPA.

The agency did not respond immediately to a request for comment.

The U.S. Renewable Fuel Standard (RFS) requires refiners to blend increasing amounts of biofuels like corn-based ethanol into the nation's fuel supply each year, or purchase blending credits from those that do. The policy has helped farmers by creating a 15 billion-gallon market for ethanol, but has rankled some refining companies that say it costs them a fortune.

Small refineries can apply for and receive waivers for their requirements if they demonstrate that complying would cause them financial hardship. The EPA has not previously divulged information on who applies for or receives the waivers, arguing the information is business sensitive.

Under former EPA Administrator Scott Pruitt, the number of waivers granted soared, however, angering biofuels groups who said it undermined demand for ethanol, and prompting calls from biofuels supporters including Republican Senator Chuck Grassley from Iowa that the agency release more detail on the waivers.

(Reporting by Chris Prentice and Jarrett Renshaw in New York and Michael Hirtzer in Chicago; Editing by Susan Thomas)

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