Following the Tenth Circuit Court of Appeals ruling that a large number of waivers extended to fuel refiners were granted illegally, oil companies have petitioned for retroactive blending waivers. The requests were characterized as a subterfuge to reinstate improper waivers according to Senator Chuck Grassley (R-IA). He demanded that petitions should be rejected, although to date the EPA has not acceded to his request.
A Department of Energy spokesperson noted that retroactive waivers relating to blending could be compliant with the ruling of the Court, representing a reversal of the intent.
Sen. Chuck Grassley (R-IA) |
Grassley noted "if the EPA ends up accepting these petitions, not only will they lose again in court they will risk President Trump's support in Iowa and other mid-western states". The ethanol industry regards waivers as an erosion of the renewable fuel standard effectively reducing demand for ethanol.
There are indications that the ethanol industry is recovering from the precipitous drop in demand for E-10 gasoline and hence ethanol with approximately half of ethanol capacity shuttered during April. Production is slowly returning as storage levels decline with increased post-COVID consumption.
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