EPA reportedly backing down on refinery waivers

The EPA reportedly will cut down on small refinery waivers in the wake of last month’s court ruling.

A panel of judges in the 10th Circuit Court of Appeals said the EPA was wrong to waive three refineries from blending renewable fuels because they had not received exemptions in the previous year, a requirement to qualify.

In a tweet, Iowa Senator Chuck Grassley said he hopes the reports are true and “the EPA stops giving RFS exemptions to big oil companies.”

According to S&P Global, renewable identification number (RIN) prices have moved sharply higher.

  • This is the best ethanol news we have had in over three years!

    Since the 10th Circuit Court’s Refinery Waver Decision in January, Ethanol Blending Demand has been on an upswing, closely following rising gasoline demand each week, as the year progresses per EIA’s weekly Liquid Supply Estimates Report.

    This is a significant change from 2019 when ethanol blending demand trailed increases in gasoline demand as the year progressed. For 2020 year to date, ethanol blending has averaged +1,214 Barrels per day, above where we were at this time in 2019. This is very significant for the ethanol industry. Even more significant is the fact that so far this year, average gasoline demand has been running behind the 2019 year, by -99,268 Barrels per day. So, instead of losing approximately 9,927 Barrels per Day of ethanol blending demand, as could have been expected, the ethanol industry has overcome the natural blending reduction and more, by increasing actual blending demand by an average of +1,214 Barrels per day. These are the most positive trends I have seen on my spread sheet in a long, long time for the ethanol industry. Let’s hope they will continue!

    Incidentally, per EIA’s Data, year to date, the US has Imported about 5.58% of its total gasoline demand as finished gasoline or gasoline blending components. So, we can argue with the EPA, the Refining Industry and President Trump, that American Ethanol production pushes out Imported Gasoline, and does NOT cost American Refining Jobs as is so often claimed by the Refining Industry!

Add Comment

Your email address will not be published.


Stay Up to Date

Subscribe for our newsletter today and receive relevant news straight to your inbox!