The Trump administration waived expensive biofuel mandates for one of the largest oil companies in the U.S., triggering speculation that more exemptions are on the way, Reuters reports.
The Environmental Protection Agency (EPA) has the authority to exempt companies from the U.S. Renewable Fuel Standard (RFS), which requires traditional fuel to be mixed with a certain amount of renewable fuel, such as ethanol. Smaller firms are historically given exemptions to avoid bankruptcy.
Roughly a month ago, the EPA waved RFS compliance for Andeavor, one of the largest oil corporations in the U.S. Endeavor brought in about $1.5 billion in profits in 2017. The exemption could save the company another $50 million in regulatory costs, Reuters reports.
The Renewable Fuels Association, a biofuel trade group, called the waiver “an outrageous abuse of the statute.”
Andeavor’s waiver could precede a number of exemptions going to some of the largest oil companies in the U.S.
The Trump administration has engaged a number of interests in the biofuels debate and has not been able to broker a compromise between them. Oil companies complain about the high cost of compliance and want the RFS cut back. Ethanol and corn interests claim expanding the standard would also reduce costs and amplify the programs benefits, according to Axios.
The negotiation has become a battle for federal favoritism where only one side can win, PBF Energy CEO Tom Nimbley told Axios in February.
Absent action from Congress, the waivers may be the Trump administration picking a side of less regulation and expanding the free-market of traditional and renewable fuel.
The move could land the EPA and President Trump in court over lawsuits alleging the administration has acted arbitrarily in handing out waivers. Moving the other way, however, could result in a similar outcome with oil companies suing over the financial “hardship” of the RFS.
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