The U.S. Environmental Protection Agency (EPA) has granted an oil refinery owned by billionaire Carl Icahn a waiver from the biofuel blending regulations—a waiver typically given to companies in financial hardship.
Under the Renewable Fuel Standard (RFS), oil refiners are required to blend growing amounts of renewable fuels into gasoline and diesel. Refiners that don’t have the infrastructure to blend biofuels must purchase tradeable blending credits known as Renewable Identification Numbers, or RINs.
The EPA has the authority to grant waivers from the renewable fuel standard to refineries whose oil processing capacity is below 75,000 bpd if the companies owning the refinery can prove that the credits they must buy are causing them financial hardship.
The EPA waiver for the 74,500-bpd Wynnewood, Oklahoma, refinery owned by Icahn’s CVR Energy has been granted in recent months, Reuters sources said, without specifying exactly when the waiver was given.
“This one’s going to be hard for [Scott] Pruitt to explain,” Brooke Coleman, head of the Advanced Biofuels Business Council industry group, said in an email to Reuters on Friday, referring to the EPA administrator.Is he required to provide an explanation?
"... if the companies owning the refinery can prove that the credits they must buy are causing them financial hardship." I assume any CFO worth his/her salt could show how RINs are causing financial hardship.It depends on the definition of "financial hardship." Bill would know.
It will be interesting to see if this gets linked on the Drudge Report tomorrow.