RFA criticizes EPA for excusing Andeavor refineries from RFS quota

The Renewable Fuels Association strongly criticized the US Environmental Protection Agency following a Reuters report that EPA exempted three Andeavor refineries from having to meet 2016 renewable fuel quotas under a small refiner hardship provision. “Providing a small refiner waiver to a company like Andeavor is laughable and abandons the commitment of President Trump to protect the Renewable Fuel Standard,” RFA Pres. Bob Dineen said.

Andeavor, formerly known as Tesoro, operates four refineries that fall below the 75,000-b/d throughput level to qualify for an RFS hardship waiver in addition to six that do not. The three plants that reportedly received 2016 renewable fuel quota exemptions are in Salt Lake City (63,000 b/d); Mandan, ND (74,000 b/d); and Dickinson, ND (20,000 b/d). The fourth of the San Antonio independent refiner-marketer’s smaller plants is at Gallup, NM (25,000 b/d).

“The criteria used to grant waivers has not changed since previous administrations,” EPA spokeswoman Liz Bowman said. “EPA follows a long-standing, established process where the agency uses a DOE analysis to inform decisions about refiner exemptions/waivers. These waivers are only considered for refineries that submit applications and that are below the blending threshold.”

Under the Clean Air Act, which governs EPA’s administration of the RFS, an operator of a small refinery with no greater than an average 75,000 b/d of crude oil throughput capacity can petition for a temporary exemption from meeting renewable fuel quotas if they can show this will impose “disproportionate economic hardship.”

EPA continues to get applications for the renewable fuel quota hardship waivers and has granted about 25 so far, other Washington sources told OGJ. The American Petroleum Institute and American Fuel & Petrochemical Manufacturers have separately called for substantial reforms or outright repeal of the RFS program because of reported fraud involving the Renewable Identification Numbers bought and sold as compliance credits.