Johnson and Craig Lead Congressional Biofuels Caucus in Introducing Legislation to Ensure Transparency in RFS Small Refinery Waiver Process

Press Release

Today, U.S. Representatives Dusty Johnson (R-S.D.) and Angie Craig (D-MN) led Co-Chairs of the Congressional Biofuels Caucus in introducing bipartisan legislation to ensure transparency and predictability to the Environmental Protection Agency's (EPA's) small refinery exemption (SRE) process. The Renewable Fuel Standard Integrity Act would require small refineries to submit a petition for a Renewable Fuel Standard (RFS) hardship exemption by June 1st of each year, allowing EPA to properly account for exempted gallons in the annual Renewable Volume Obligations set each November. The bill would also increase transparency by mandating the public disclosure of data surrounding SREs -- a process that has previously been carried out behind closed doors with little to no congressional oversight.

Johnson and Craig were joined in introducing the RFS Integrity Act by Representatives Rodney Davis (R-IL), Cindy Axne (D-IA), Mark Pocan (D-WI) and Adrian Smith (R-NE).

"No matter the administration, Congress should not sit on the sidelines while the intent of the Renewable Fuel Standard is being abused and manipulated," said Representative Dusty Johnson. "The RFS Integrity Act adds accountability and transparency to the EPA Small Refinery Exemption process -- something we should all agree upon. With each approved waiver, rural communities continue to suffer. This bill will ensure that volume obligations are met whether it's a Republican or Democrat in the White House."

"For the past several years, the Environmental Protection Agency has skirted Congressional oversight and prioritized the interests of Big Oil over family farmers in Minnesota, leaving ethanol producers at a distinct disadvantage," said Representative Angie Craig. "This senseless, shortsighted policy has greatly impacted rural communities who depend on the Renewable Fuel Standard to help support their local economies -- at a time when these communities are especially vulnerable due to the COVID-19 pandemic and economic crisis. Fortunately, our bipartisan bill would reverse that trend by helping to ensure that transparency, predictability and accountability are prioritized in the EPA's waiver process moving forward -- and that rural communities receive the support they deserve from the federal government in the years to come."

"In recent years, the Renewable Fuel Standard has been weakened by Small Refinery Exemptions to the detriment of farmers and biofuels producers across America," said Representative Rodney Davis. "Particularly in this struggling economy, where our biofuels producers continue to lack access to assistance, we should strengthen the RFS and ensure regulators adhere to it. That's why I'm proud to introduce the RFS Integrity Act alongside my fellow House Biofuels Caucus co-chairs. Our legislation will help bolster the RFS through increased transparency to support our farmers and biofuels producers."

"For the last four years, the EPA has abused its authority and given out dozens of small refinery waivers at the expense of farmers across the Midwest. These illegal waivers resulted in over 4 billion gallons of biofuels being removed from the market, reducing demand and creating uncertainty for producers," said Representative Cindy Axne. "While I'm hopeful our new administration will uphold the RFS, new legislation is clearly needed to permanently increase transparency and accountability at the EPA. I'm proud to help introduce the RFS Integrity Act to ensure the EPA is always upholding the law."

"I am proud to join my colleagues as an original sponsor of the RFS Integrity Act. For too long, big oil corporations have taken advantage of federal law at the expense of farmers and agricultural communities," said Representative Mark Pocan. "This commonsense legislation will provide needed transparency and certainty for Wisconsin farmers at a time when they need it the most."

"Now, more than ever, transparency in fuel markets is vital for our farmers and biofuels producers," said Representative Adrian Smith. "The Renewable Fuel Standard Integrity Act will ensure all parties can make production decisions knowing they can rely on EPA to fairly and evenly enforce the RFS."

By law, the RFS requires that the EPA make adjustments when determining future biofuels targets to account for waivers to ensure that the overall biofuels targets are not reduced by waivers. However, in recent years, the agency has not accounted for these waivers, which has undercut the demand for biofuels. And under the past administration, the EPA greatly expanded the number of small refinery hardship biofuel waivers that were issued. By issuing 85 waivers under former Administrator Scott Pruitt, the EPA saved the oil industry hundreds of millions of dollars while threatening rural economies and harming the biofuels industry at large.

The bipartisan bill is supported by the National Corn Growers, Growth Energy, Fuels America, the Renewable Fuels Association, the National Biodiesel Board, the American Soybean Association, POET, the American Farm Bureau Federation, the National Farmers Union and other groups dedicated to protecting and strengthening the Renewable Fuel Standard.

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