On May 3, 2018, the Advanced Biofuels Association (ABFA) announced that it had submitted a petition in the U.S. Court of Appeals for the D.C. Circuit to review EPA Administrator Scott Pruitt’s decision to provide waivers from RFS requirements. Michael McAdams, President of ABFA, stated:
“We have seen reports that the number of small refinery exemptions recently granted for compliance years 2016 and 2017 have doubled compared to previous years. ABFA members are concerned that Administrator Pruitt is granting these exemptions in an arbitrary and capricious manner to undisclosed parties behind closed doors with no accountability for its decision-making process.”
“The news reports about these exemptions have had immediate and significant market impacts on the prices of Renewable Identification Numbers (RINs) for the biomass-based diesel (D4) and overall renewable fuel (D6) pools,” continued McAdams. “Dropping RIN prices disincentivize blending, causing economic harm to ABFA’s members and posing a threat to the integrity of the RFS program at large.
These concerns originated when a large oil refinery, Andeavor, was granted a hardship waiver, which is typically given to small refineries producing less than 75,000 barrels per day that suffer a disproportionate economic hardship from the cost of RFS compliance.