EPA allocates three biofuel waivers


On: Jan 2021

The United States Environmental Protection Agency (EPA) has recently allocated three waivers to leading oil refiners that discharge them from American biofuel blending obligations, a last-minute decision before president Donald Trump leaves office on January 20. The agency assisted two waivers for the 2019 compliance year as well as single wavier for the 2018 compliance year.

The declaration followed 4 years of battle around the waiver program under the administration of Donald Trump, but deserted several questions unresolved. Nearly 30 waiver request remain exceptional for 2019 and 15 for last year, which the incoming Joe Biden administration will require to workout with. The three waivers were allocated to oil refiners, but it was still unclear which refiners grabbed the exemptions.

During his presidency Mr. Trump tried to discover a compromise between two essential constituencies, farmers as well as oil refiners, that clashed about national needs to merge biofuels into the fuel mix. As per the United States Renewable Fuel Standard, refiners are needed to combine numerous gallons of biofuels into their fuel mix or acquire credits from those that perform it. Refiners can apply for a privilege if they can demonstrate the needs would make them financially low. 

The farmers and producers of Biofuel stated that the waivers hamper demand for their products, while oil refiners cancel that claim and say that it is important to keep small-scale refiners drifting. The administration of Donald Trump has largely gained the number of waivers it allocates to refiners.

The administration declared several new decisions about the US biofuel blending legislation. This month, the agency said that it was demanding comment on a possible general waiver for the compliance years from 2019 and 2020. Furthermore, it will implement a new regulation that would decline or change the labelling for retail gasoline that contains larger ethanol blends. The agency also stated that it was proposing to expand the deadlines for oil refiners to illustrate compliance along with combining requirements for 2019 & 2020.