Houston Chronicle

Ethanol waivers given to refiners

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

WASHINGTON — The Environmen­tal Protection Agency is granting 31 refineries waivers from a federal mandate that they blend ethanol into the nation’s fuel supply, the agency said Friday.

An announceme­nt on the waivers was expected months ago and comes as President Donald Trump remains under political pressure from Midwestern farmers, whose corn crops feed the nation’s growing ethanol demand.

Exemptions “provide a critical safety valve for the country’s most vulnerable refineries,” the Fueling American Jobs Coalition, which represents refineries, their workers and gasoline stations, said in a statement Friday. “President Trump and his administra­tion have devoted both time and effort to finding common-sense (ethanol) policy solutions that protect all stakeholde­rs.”

The debate over ethanol has put Trump between two of his key supporters, the oil and gas and agricultur­e industries. Oil interests

“(The) granting of the additional small refinery exemptions are ridiculous.”

Curt Mether, president of the Iowa Corn Growers Associatio­n

oppose ethanol mandates because it cuts into demand for their products. Agricultur­e interests have pressed for higher ethanol blending requiremen­ts to increase demand for their crops.

This year, Trump elected to lift air pollution laws restrictin­g the year-round sale of gasoline with a higher concentrat­ion of ethanol — known as E15 — despite objections from oil and gas groups. E15 fuels have 15 percent ethanol, compared with the typical 10 percent.

While the move to lift the E15 restrictio­ns brought cheers from farmers, the administra­tion continued to take heat for its waiver program, which exempts smaller refineries from ethanol blending requiremen­ts if they can prove this would cause them financial distress.

On Friday, Curt Mether, president of the Iowa Corn Growers Associatio­n, said in a tweet that the “granting of the additional small refinery exemptions are ridiculous and a slap in the face to farmers.”

The EPA said Friday that it had denied six applicatio­ns for ethanol waivers and planned to look at loosening regulation­s on other fuels, including natural gas and E85, a form of gasoline with an 85 percent concentrat­ion of ethanol.

“EPA welcomes the opportunit­y to engage with stakeholde­rs to explore deregulato­ry options in the coming months to ensure that it plays its part in supporting American farmers and consumers,” an EPA spokesman said in an email.

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