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Wednesday, March 25, 2020

EPA doesn't appeal court decision limiting small-refinery biofuel waivers, handing a win to corn and ethanol interests

"The Trump administration has decided not to appeal a court ruling that would sharply reduce its use of waivers exempting refineries from the nation’s biofuels regulation, cheering the corn lobby but drawing anger from oil refiners," Stephanie Kelly reports for Reuters. The Environmental Protection Agency had to appeal by yesterday, and no such filing was entered.

"EPA had been expected to apply the decision nationwide and drastically cut the number of exemptions it issues," Ryan McCrimmon reports for Politico's Morning Agriculture. "But the president faced heavy pressure from Republicans and Attorney General William Barr not to do so. That prompted Trump to instead request an extension until March 24 on whether to appeal the ruling." In the end, the administration apparently decided not to appeal, even after more than a dozen Republican senators from oil-producing states published an open letter to the president warning that allowing the ruling to stand would financially endanger small refineries.

"The decision appears to end a years-long battle between the rival oil and corn industries," two important Trump constituencies, Kelly reports. "Refiners argue the waivers are crucial to keeping small refining facilities in business, but agriculture representatives say they have been overused and hurt farmers by eroding demand for corn-based ethanol."

The battle centers over the Renewable Fuels Standard, which requires refiners to blend increasing amounts of ethanol into their gasoline each year. Small refiners that would be financially hurt by adhering to the blending standards can seek waivers, but corn interests have accused the Trump administration of improperly using the waivers as a way to get around the RFS, Kelly reports.

EPA appears to be complying with the court ruling. In late February, it had scaled back its granting of waivers, McCrimmon notes.

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