EPA Refinery Biofuel Waiver Program On Hold Pending Review

[PavelP + 15]

Reuters Agency noted that the Trump Administration has temporarily frozen a program meant to exempt small oil refineries in financial distress from the U.S. biofuels law, as it reviews the scoring system to evaluate applications, according to two sources familiar with the matter. The review means changes are likely to the program, which has become a lightning rod of controversy between the rival oil and corn industries since the Environmental Protection Agency vastly increased the number of waivers for last year. Under the U.S. Renewable Fuel Standard, oil refiners must increasingly blend biofuels like corn-based ethanol into their fuel each year or purchase blending credits from those that do. The regulation was passed in 2005 to help farmers and cut fuel imports. But small oil refineries can be exempted from the standard if they prove that compliance would cause disproportionate hardship. The EPA granted 29 such waivers for the 2017 compliance year, up from 14 in 2015 and 20 in 2016. The two sources, who requested anonymity to discuss the matter, said over the past week that the Trump administration was delaying consideration of any new waivers while the Department of Energy reviews its scoring system for applications. The department evaluates waiver requests and provides recommendations to the EPA.

[50 shades of black + 254]

Yep. A few days ago was: "EPA plans biofuel 'reset' as program misses Congress' targets..." What are the penalties for this miss?

[Petar + 76]

Again, corn lobby is trying to force it's way into the economy by having to govt force you to buy it mixed in your fuel. Not good for engine, not good for the environment.
 

[Illurion + 894]

I have a slightly different take on this,  given that i am a normally skeptical person.

I try to consider who might make money on this ?

My finding is that there are "two" separate "results" this will cause which will make money for entities involved with each different result stream.

(1)  The well known continuing battle between farmers and oil producers is stream one.   This "reset" is designed to help farmers at the expense of oil producers.   Depending on how it plays out,  money can be made by entities on both sides.

(2)  Stream two.  This "reset"  and the "churn" it could cause,  could affect "Refinery Down-Time".     We already have yearly scheduled "Refinery Down-Time" that is "not supposed" to affect the market,  but often "conveniently" does anyway,  causing regional fuel availability shortages and short-term gasoline price increases.     It would not surprise me that this "reset" could be manipulated to affect refinery down-time.    Money could certainly be made by that,   at the expense of the driving public.