According to a statement by EPA Director Andrew Wheeler, the 52 requests for retroactive waivers to absolve refiners of the need to dilute gasoline with ethanol have been referred to the Department of Energy for review.
Wheeler noted that petitions date back to 2012 and accordingly some applications may be rejected as refiners will not be able to demonstrate “economic harm” based on the fact that the applicable RINS may not be active in 2020.
The issue of waivers has resulted in considerable lobbying activity by both proponents and opponents of the renewable fuel standard. The issue has degenerated into a confrontation between the oil refining industry on the one hand and corn growers and ethanol producers on the other. Waivers detract from the renewable fuel standard and during a period when demand for gasoline has fallen sharply and between 30 to 40 percent of ethanol production has been shuttered, the Administration is torn between opposing interests with dire political implications.
Projection of fuel requirement is optimistic; Cellulosic ethanol is a myth.