The Environmental Protection Agency let a big oil refiner off the hook from the nation’s ethanol mandate, signaling that more exemptions may be on the way.
The EPA said it would waive the ethanol mandate’s requirements for the San Antonio company Andeavor, one of the top refiners in the country.
The decision marks the second time in recent weeks that the agency has let an oil refiner bypass the Renewable Fuel Standard, Reuters reported Tuesday.
The first company was Philadelphia Energy Resources, which filed for bankruptcy protection in January, blaming the purchase of the RFS’ expensive renewable identification number credits for hundreds of millions of dollars in costs.
The EPA and the Justice Department announced last month that it would waive Philadelphia Energy’s obligation under the RFS. The settlement would exempt the company from the ethanol mandate’s requirements beyond what it was already able to meet.
The RFS requires refiners to blend ethanol into the fuel they make. But independent refiners that don’t have the ability to blend the fuel must purchase the credits to meet the standard.
But Andeavor is a different case. It is a successful company with a long track record of good management and business practices. The RFS exemption for the company, which has not been publicly announced, applies to three of Andeavor’s smallest refineries.
The EPA’s decision raises the prospect that other large companies such as Exxon Mobil, Chevron, and Phillips 66 could get similar exemptions. All three companies own refineries of similar size to those exempted for Andeavor.
The Trump administration has been looking for a way to address the high price of the ethanol credits, but only if it doesn’t harm the ethanol industry.
In recent weeks, Congress has urged President Trump not to pursue a solution through EPA, but to wait for lawmakers to draft legislation overhauling the ethanol program.
