WASHINGTON— To protect Louisiana refinery workers, U.S. Senators Bill Cassidy, M.D. (R-LA), and John Kennedy (R-LA) are joining 18 of their Senate colleagues in urging the U.S. Environmental Protection Agency (EPA) to refrain from retroactively reallocating the Renewable Fuel Standard (RFS).
“In recent weeks, media reports indicated that the Environmental Protection Agency (EPA) considered a proposal to retroactively reallocate the Renewable Fuel Standard (RFS) compliance obligations from small refineries, which have received hardship relief, to other refineries and importers. Thankfully, in the proposed rule setting renewable volume obligations for 2019 (the ‘2019 RVO’), EPA abandoned this ill-considered plan. However, given the requests from biofuel interests, we are writing this letter to state very clearly our strong opposition to any future resurrection of this proposed policy,” states the senators’ letter to Acting EPA Administrator Andrew Wheeler. “Simply put, a retroactive reallocation of small refinery obligations to other obligated parties is illegal and fundamentally unfair, imposing a financial penalty on refineries that have otherwise been in compliance with the law.”
In addition to Cassidy and Kennedy, senators signing the letter include Jim Inhofe (R-OK), Orrin Hatch (R-UT), Michael Enzi (R-WY), Johnny Isakson (R-GA), John Barrasso (R-WY), Roger Wicker (R-MS), James Risch (R-ID), Joe Manchin (D-WV), John Boozman (R-AR), Pat Toomey (R-PA), Mike Lee (R-UT), Jeff Flake (R-AZ), Ted Cruz (R-TX), Shelley Moore Capito (R-WV), James Lankford (R-OK), Tom Cotton (R-AR), Steve Daines (R-MT), and Cindy Hyde-Smith (R-MS).
The full text of the senators’ letter is below.
Dear Acting Administrator Wheeler:
In recent weeks, media reports indicated that the Environmental Protection Agency (EPA) considered a proposal to retroactively reallocate the Renewable Fuel Standard (RFS) compliance obligations from small refineries, which have received hardship relief, to other refineries and importers. Thankfully, in the proposed rule setting renewable volume obligations for 2019 (the “2019 RVO”), EPA abandoned this ill-considered plan. However, given the requests from biofuel interests, we are writing this letter to state very clearly our strong opposition to any future resurrection of this proposed policy.
There is little doubt that retroactively reallocating obligations would only compound the problems with the RFS. Simply put, a retroactive reallocation of small refinery obligations to other obligated parties is illegal and fundamentally unfair, imposing a financial penalty on refineries that have otherwise been in compliance with the law. By so doing, retroactive reallocation violates the principles of due process and administrative law and is clearly not authorized under the Clean Air Act. Further, retroactive reallocation injects radical uncertainty into the market for compliance credits, hurting the U.S. refining base, its workers, and the communities they serve.
Retroactive reallocation is also inconsistent with sound energy policy. A robust domestic refining sector is a key element to national security, as administrations of both political parties have found. Refineries are a source of high-paying manufacturing jobs, thousands of which are placed at risk when RFS compliance obligations aren’t reasonable and when compliance costs escalate. All of this is placed in harm’s way if EPA retroactively reallocates the obligations of small refineries, which have received hardship relief. We urge EPA to maintain the policy articulated in the proposed 2019 RVO and not deviate from sound policy and the law by trying to fashion any form of retroactive reallocation. Any other direction undermines national security, threatens higher gasoline prices for U.S. consumers, and risks economic harm to fuel providers and the loss of manufacturing jobs.
Sincerely,
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