Senators from refinery states try to stop Trump from shifting the renewable fuel obligation
According to a draft of legislation that was seen by the, oil refinery state lawmakers, led by Senator Mike Lee (a Republican from Utah), will introduce legislation to stop President Donald Trump from shifting renewable-fuel blending obligations away from smaller refineries and towards larger ones.
The bill reflects the political divisions in the U.S. Biofuels Policy, which pits farm interests against the oil industry that supports U.S. productions of biofuels such as corn-based bioethanol.
The current debate centers on whether or not larger refineries must meet the requirements for biofuel blends that smaller refineries can avoid by obtaining federal exemptions. The Environmental Protection Agency submitted a proposal to the White House for review. Its contents are not yet public.
"Punishing American producers of energy who follow the EPA's fabricated rules is not only unfair, but it's bad news for consumers." Americans will pay higher prices at the pumps and Utah's refining facilities will suffer," Lee stated in a press release.
Trump faces a new headache as he attempts to unite Republicans ahead of an upcoming government shutdown. The funding for federal agencies expires at the end the month. Meanwhile, the battle over the small refinery exemptions has divided GOP lawmakers right when Trump is trying to get their support in order to pass Trump's budget and avoid shutdown.
The EPA cleared a backlog containing more than 170 small-refinery exemption requests that date back to 2016. This is a major move, which now forces the White House review how it should handle billions of gallons in biofuel blending requirements going forward.
Reports indicate that the EPA gave the White House a preference option for dealing with the gallons exempted, along with other options which will be weighed as part of the review. The decision should be made in the next few weeks.
The bill, titled Protect Consumers from Reallocation Costs Act 2025, amends the Clean Air Act by prohibiting the EPA from reallocating obligations for renewable fuels. The Republican Senators John Barrasso of Wyoming and Bill Cassidy of Louisiana are also co-sponsors. (Reporting by Jarrett Renshaw, Editing by Margueritachoy)
(source: Reuters)
