[ST. PAUL, MN] In response to the devastating effects of the Trump Administration’s recent refinery waivers, Minnesota Governor Tim Walz and Republican South Dakota Governor Kristi Noem today sent a letter urging President Trump to take action to support farmers and renewable fuel producers. The Trump Administration continues to grant small refinery hardship waivers under the Renewable Fuel Standard (RFS), releasing those refineries from their obligations to blend biofuels. These waivers have led to an increasing number of renewable fuel plants closing or idling production, including the Corn Plus ethanol plant in Winnebago, Minnesota. Governor Walz and Governor Noem are the chair and vice chair of the Governors’ Biofuels Coalition.

“As governors of ethanol producing states, we are extremely concerned by your Administration’s actions to continue to grant small refinery hardship waivers under the Renewable Fuel Standard (RFS),” the governors wrote. “The recent approval of 31 additional small refinery waivers undermines the integrity of the RFS and harms our states’ agricultural communities, which have already been affected by the Administration’s tariffs. Since 2016, your Administration has issued 85 exemptions, representing a loss of over 4.3 billion gallons of ethanol.  We are hearing from farmers and renewable fuel producers that the waivers are the reason an increasing number of renewable fuel plants are closing or idling production.” 

The governors suggested the President take the following action:

• Request that EPA add the lost gallons to the pending 2020 Renewable Volume Obligations proposed rule.
• Initiate another Biofuels Infrastructure Partnership (BIP) program through USDA so states and private partners can match more federal funds and improve consumer access to renewable fuels. 
• Increase the minimum octane standard in gasoline to create an immediate market for more ethanol and eliminate the need to import octane.
• Direct EPA to enforce the Clean Air Act requirement to replace the aromatic toxics in gasoline, which would allow refiners to use ethanol — a less expensive source of octane.

“Farmers, environmentalists, and consumers would all benefit from these actions,” the governors wrote. Governor Walz and Governor Noem also offered to work with the Administration to find solutions to address the impact the waivers have had on the nation’s agriculture community and ethanol producers.

The law sets forth annual amounts of renewable fuel of various types to be blended into the nation’s transportation fuel supply. Fuels such as corn starch ethanol, biodiesel and other advanced biofuels provide an important market for farmers in a rough agricultural economic cycle. They also help improve air quality and reduce greenhouse gas emissions.

The U.S. Environmental Protection Agency under the Trump Administration has granted “hardship” exemptions to 85 oil refineries since 2016, including 31 granted in early August, reducing the volume of renewable fuels blended into the nation’s transportation supply by a whopping 4.04 billion gallons. This is a dramatic increase over the previous administration, which granted a total of 23 exemptions over three years, representing 690 million gallons.

The full letter is below:

September 4, 2019

The Honorable Donald J. Trump

President

The White House

1600 Pennsylvania Avenue

Washington, DC

Dear Mr. President:

              As governors of ethanol producing states, we are extremely concerned by your Administration’s actions to continue to grant small refinery hardship waivers under the Renewable Fuel Standard (RFS).

              Every waiver EPA approved affects our states.  The recent approval of 31 additional small refinery waivers undermines the integrity of the RFS and harms our states’ agricultural communities, which have already been affected by the Administration’s tariffs.  Since 2016, your Administration has issued 85 exemptions, representing a loss of over 4.3 billion gallons of ethanol.  We are hearing from farmers and renewable fuel producers that the waivers are the reason an increasing number of renewable fuel plants are closing or idling production.

              We are heartened, however, by reports that you will announce a plan to mitigate the effects of the small refinery waivers next week. We respectfully request that you consider the following steps as you develop your plan:

• Request that EPA add the lost gallons to the pending 2020 Renewable Volume Obligations proposed rule.
• Initiate another Biofuels Infrastructure Partnership (BIP) program through USDA so states and private partners can match more federal funds and improve consumer access to renewable fuels. 

              In addition to addressing these RFS issues, there are several other steps you can take to help expand the market for ethanol.  For example, increasing the minimum octane standard in gasoline to create an immediate market for more ethanol and eliminate the need to import octane.  You could also direct EPA to enforce the Clean Air Act requirement to replace the aromatic toxics in gasoline, which would allow refiners to use ethanol — a less expensive source of octane. 

              Farmers, environmentalists, and consumers would all benefit from these actions.  We look forward to working with you to find solutions to the impact of the small refinery waivers on the nation’s agricultural community and ethanol producers.

Tim Walz, Chair                                                        Kristi Noem, Vice Chair

and Governor of Minnesota                                 and Governor of South Dakota

cc:         The Honorable Andrew Wheeler, EPA Administrator

              The Honorable Doug Hoelscher, Special Assistant to the President, White Office of Intergovernmental Affairs

              The Honorable Francis Brooke, Special Assistant to the President for

              Energy and Environmental Policy

              Member Governors