Congressional Biofuels Caucus Members Press EPA to Remedy Damage from SRE Waivers

WASHINGTON –Co-Chairmen Collin Peterson (D-Minn.), Roger Marshall, M.D. (R-Kan.), Dave Loebsack (D-Iowa), Rodney Davis (R-Ill.) and more than 20 members of the bipartisan Congressional Biofuels Caucus sent a letter today urging Environmental Protection Agency Administrator Andrew Wheeler to address damage to the nation’s biofuels industry from EPA’s use of Small Refinery Exemptions (SREs). In the letter, members outlined the damage caused by the SREs and called on EPA to ensure waived gallons are reallocated when setting Renewable Volume Obligations (RVOs).

“EPA’s recently announced decision to grant 31 small refinery exemptions (SREs) continues to cast serious doubt on the agency’s ability to administer the RFS consistent with Congressional intent,” wrote the members in the letter. “Since early 2018, EPA granted 85 blending exemptions to refineries which equals more than 4 billion ethanol-equivalent gallons of renewable fuel being taken out of the marketplace. These conditions have caused three ethanol facilities to close permanently and another fourteen to idle, affecting nearly 3,000 jobs and hundreds of millions of corn bushels on an annual basis.”

The letter also details damage caused by the SREs to the biodiesel industry, including nearly $7.7 billion in economic losses and the closure of at least eight biodiesel facilities have shut down this year, representing 6,800 jobs and 215 million gallons of annual production.

Joining Peterson, Marshall, Loebsack and Davis on the letter include Reps. Jim Hagedorn (R-Minn.), Cheri Bustos (D-Ill.), Cindy Axne (D-Iowa), Abby Finkenauer (D-Iowa), Angie Craig (D-Minn.), Adrian Smith (R-Neb.), Mike Bost (R-Ill.), Mark Pocan (D-Wisc.), Jeff Fortenberry (R-Neb.), James Comer (R-Ky.), Darin LaHood (R-Ill.), Don Bacon (R-Neb.), Emanuel Cleaver (D-Mo.), Steve King (R-Iowa), Steve Watkins (R-Kan.), Vicky Hartzler (R-Mo.), and Ann Wagner (R-Mo.), Jim Baird (R-Ind.), Dusty Johnson (R-S.D.), Adam Kinzinger (R-Ill.), Ron Kind (D-Wisc.).