https://cbs2iowa.com/news/local/grassley-says-epa-screwed-farmers-with-biofuels-exemptions
[Trump delivers another subsidy/support for the U.S. oil industry, and
slap in the face of U.S. farmers.]
Grassley says EPA 'screwed' farmers with biofuels exemptions
by Associated Press
Friday, August 16th 2019
JOHNSTON, Iowa — Sen. Charles Grassley says farmers were "screwed" by
the Trump administration's decision to allow some refineries to not
blend ethanol with gasoline as required under federal law.
During a taping of Iowa Public Television's "Iowa Press" program Friday,
Grassley was asked his thoughts on 31 refinery exemptions the
Environmental Protection Agency issued for 2018 and approved after a
review last week.
He responded: "They screwed us."
President Donald Trump promised farmers , who largely supported him in
the 2016 election, he would support ethanol production.
The fuel is primarily made from corn.
Industry groups say the additional exemptions reduced biofuel demand by
1 billion gallons.
They say previous exemptions the last two years reduced demand by 2.6
billion gallons.
Some in the industry blame the policy for recent biofuels plant closures.
==============================================================
https://www.businesstimes.com.sg/energy-commodities/trump-intervention-triggered-epas-surprise-biofuel-waiver-decision-sources
Trump intervention triggered EPA's surprise biofuel waiver decision: sources
Sat, Aug 17, 2019 - 8:57 AM
[WASHINGTON] A phone call from US President Donald Trump last week ended
a nearly two-month-long review of the nation's biofuels program, three
sources familiar with the matter said, with the White House siding in
favour of oil refiners over corn growers.
Mr Trump gave Andrew Wheeler, head of the US Environmental Protection
Agency (EPA), the green light for the regulator to announce it had
granted 31 small refinery exemptions out of the 40 applications, saying
he wanted the issue off his desk, the sources said.
Mr Trump's call triggered a flurry of action within the EPA, leading up
to a surprise Friday afternoon announcement, after weeks of negotiations
between US government agencies failed to make progress in addressing
farmers' concerns.
"The president has heard from all sides and in the end he has had enough
of it. He called Wheeler and gave him the green light," a source
familiar with knowledge of the matter said.
The White House has sought to make changes to the nation's biofuels laws
since the beginning of Trump's administration in early 2017, but found
themselves caught between the powerful oil and corn lobbies, both of
whom have allies in Washington in Trump's Republican Party.
The debate underscores the rising political importance of the US
Renewable Fuel Standard (RFS), a more than decade-old federal policy
that requires refineries to blend corn-based ethanol into their gasoline
or buy credits from those that do.
Since Mr Trump took office, the EPA has more than quadrupled the number
of waivers it has granted to refineries, including some operated by
giants Exxon Mobil and Chevron Corp, saving the oil industry hundreds of
millions of dollars, but enraging farmers who claim the exemptions
threaten demand for one of their staple products.
Refiners dismiss the argument, saying ethanol demand has not been affected.
The White House declined to comment for this story.
The EPA referred Reuters to an Aug 9 press release on small refinery
waivers in which it repeated the criteria on how to qualify for an
exemption.
Iowa's Republican Senator Chuck Grassley said the EPA had "screwed" the
US ethanol industry and farmers by granting the waivers.
"They screwed us ... when they issued 31 waivers," the powerful senator,
who represents the largest ethanol-producing state in the country, told
Iowa Public Television. "Compared to less than 10 waivers during all the
Obama years ... What's really bad isn't a waiver, it's that it's been
granted to people who aren't in hardship," he said.
Mr Trump had ordered the revamp of the waiver program in June, after
hearing from angry farmers during a trip to Iowa, the nation's top
ethanol producing state. Even though the corn lobby seemed to have the
upper hand in early talks, the oil industry's efforts eventually gained
more traction, industry sources have told Reuters.
Iowa is a swing state that Mr Trump carried in 2016 and is potentially
crucial for his re-election efforts next year. Farmers in the state have
also chafed under Mr Trump's trade war with China that has sapped demand
for agriculture products.
Farmers slammed last Friday's decision, saying the Trump administration
was bailing out the oil industry at a time when US farmers were
suffering due to his trade war with China. The refining industry
welcomed the move, saying the waivers are lawful and help shield small
refiners from the burdensome cost of compliance with RFS.
=====================================
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