Andeavor, one of the largest U.S. oil refining companies, reported $1.5 billion in net profits last year. Yet the EPA gave it a waiver from having to comply with the Renewable Fuel Standard, reported Reuters. The exemption, which applies to Andeavor’s three smallest refineries, “raises the question of whether other big and profitable oil firms with small refineries – such as Exxon Mobil Corp, Chevron Corp and Phillips 66 – also have or could receive the waivers, which are granted by the EPA in secret.”
The waiver was designed for refineries that process less than 75,000 barrels per day and that can can show a “disproportionate economic hardship” due to the mandate to blend corn ethanol into the gasoline supply. Andeavor could save $50 million this year through the waiver, which covers so-called biofuel credits for 2016 production, said Reuters. Andeavor also asked for a waiver for 2017 for the refineries in North Dakota and Utah.
Two of President Trump’s constituencies, corn farmers and refinery workers, are on opposite sides of an oil industry drive to relax the RFS. Trump held two White House meetings on the subject a month ago without reaching a consensus.
“Providing a small refiner waivers to a company like Andeavor is laughable and abandons the commitment of President Trump to protect the RFS,” said the Renewable Fuels Association. “This in an outrageous abuse of the statute.” The National Farmers Union said the waiver would hurt the farm sector. More than 35 percent of the U.S. corn crop is used in making ethanol.