Houston Chronicle

Refineries demand ethanol waivers — or else

- By James Osborne STAFF WRITER james.osborne@chron.com twitter.com/osborneja

WASHINGTON — An attorney representi­ng a group of unnamed refineries is threatenin­g to sue the Environmen­tal Protection Agency if it doesn’t start granting waivers from the federal ethanol mandate.

The attorney, LeAnn Johnson Koch, a Washington energy attorney with the law firm Perkins Coie, said in a letter Wednesday that refiners would file a federal lawsuit in 60 days unless the EPA starts issuing waivers, which are granted to smaller refineries that can prove the mandate poses a financial hardship.

“The uncertaint­y over whether or not hardship relief will be granted has tied up small refineries’ precious working capital and prevented them from investing in their refineries to make efficiency improvemen­ts to remain competitiv­e and profitable,” the letter said.

The legal threat comes as the Trump administra­tion has delayed issuing waivers to refineries, following political pushback from Midwestern corn farmers, who sell their crops to ethanol producers to make fuel. Trump had hoped his decision to loosen air pollution restrictio­ns to allow the year-round sale of the fuel E15, which contains 15 percent ethanol compared with 10 percent in standard gasoline, would assuage farmers’ objections to the waivers.

But following a visit to Iowa, Trump reportedly told EPA Administra­tor Andrew Wheeler and Agricultur­e Secretary Sonny Perdue to look into the ethanol waiver program.

“They’re concerned and I think the president heard that concern directly from farmers,” Geoff Cooper, president of the ethanol industry trade group Renewable Fuels Associatio­n, said earlier this month. “The yearround allowance for E15 doesn’t do much if anything for ethanol demand if the (mandate) is not being fully enforced.”

Little used in previous administra­tion, ethanol waivers have been handed out at a fast clip by the Trump administra­tion. Last year more than 30 refineries across the country were issued exemptions, allowing them to avoid blending or buying biofuel credits for an estimated 1.2 billion gallons of ethanol — about 8 percent of their total obligation under federal law, according to the Renewable Fuels Associatio­n.

Koch declined to make public the name of her clients in her letter, saying their participat­ion in the waiver program is confidenti­al.

 ?? Jeff Wheeler / Tribune News Service ?? A group of refiners is threatenin­g to sue the EPA unless it resumes issuing ethanol waivers, which are granted to smaller refineries.
Jeff Wheeler / Tribune News Service A group of refiners is threatenin­g to sue the EPA unless it resumes issuing ethanol waivers, which are granted to smaller refineries.

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