By Stephanie Kelly
NEW YORK (Reuters) - U.S. President Joe Biden’s pick to lead the Environmental Protection Agency said on Wednesday he will consult with general counsel to understand the options available for a program that exempts small refiners from biofuel blending obligations.
Michael Regan, formerly head of North Carolina’s environmental regulator, said waiting for a ruling from the Supreme Court on a case related to the program was “one way to go.” He also emphasized transparency and communication around the waiver program and committed to following the law.
A court case last year cast doubt on the program, and the Supreme Court is currently reviewing the case.
The exemption program is contentious, as biofuel producers and corn farmers say the waivers hurt demand for their products, while the oil industry rejects that claim and says the program is necessary to keep small refiners afloat amid pricey blending obligations.
“The one thing I know I have to do is consult with our general counsel, understand where we are in the legal process, and also understand what options do we have to continue conversations,” he said during a hearing on his nomination.
Under the U.S. Renewable Fuel Standard, refiners must blend billions of gallons of biofuels into their fuel mix, or buy credits from those that do. Refiners can apply for waivers, known as Small Refinery Exemptions, if they can prove the requirements do them financial harm.
The previous EPA under former President Donald Trump punted several issues related to the RFS and exemption program to the Biden administration. Renewable volume obligations for 2021 have not yet been set, though the deadline was the end of November.
Further, tens of Small Refinery Exemption petitions remain pending. The former Trump administration largely left petitions untouched for the 2019 compliance year as litigation plays out.
