Sen. Chuck Grassley criticized Environmental Protection Agency Administrator Scott Pruitt on Wednesday for running a “broken” ethanol program, after reports said Marathon Petroleum, the nation’s second largest refiner, is seeking a “hardship” waiver to not blend ethanol.
“That an oil company making billions of dollars in profits even thinks it has a shot at receiving a ‘hardship’ waiver proves how broken this process is,” the Iowa Republican said.
Under the Renewable Fuel Standard, the EPA is required to ensure that 15 billion gallons of ethanol is blended in the nation’s gasoline supply. But the waivers that Pruitt has been granting are lowering the amount of ethanol being blended and sold.
[Related: Ethanol lobby opposes plan to replace Renewable Fuel Standard]
“Any changes to the Renewable Fuel Standard have to fix this embarrassing loophole and guarantee 15 billion gallons of ethanol actually get blended,” said Grassley, whose home state is the nation’s biggest producer of corn ethanol.
“The statutory volume obligation for conventional biofuels is 15 billion gallons annually,” he added. “That’s what Congress intended. That’s the spirit of the law. That’s what President Trump promised.”
Trump reached a deal between the refiners and the ethanol industry to remove an EPA cap on blending ethanol into the nation’s fuel supply at 10 percent.
[Related: Trump gives ethanol industry huge victory by endorsing higher fuel blends]
Trump also directed the EPA to allow renewable fuel credits from exporting ethanol overseas to expand the existing pool of renewable identification number credits used by refiners to comply with the RFS. The refiners have long complained about the high price of the credits. Trump’s deal would seek to lower prices by driving up the supply of credits.
However, Pruitt has not acted to implement any of the changes, while exempting dozens of refineries from having to comply with the RFS requirements.
The White House has directed Pruitt to stop the waiver process and implement the president’s directives under the deal. What Pruitt does in response to Marathon’s request could act as a bellwether for how serious the EPA is in implementing the deal.
The refinery industry has said that Pruitt is required to review and approve the waivers, based on a court ruling from the 10th Circuit Court of Appeals granting the EPA broader discretion in implementing the small refinery hardship exemptions.
Grassley has threatened that he will begin calling for Pruitt’s resignation if the exemptions are not stopped.
