EPA Grants Biofuels Waiver To Billionaire Icahn's Oil Refinery: Sources

"NEW YORK - The U.S. Environmental Protection Agency has granted a financial hardship waiver to an oil refinery owned by billionaire Carl Icahn, a former adviser to President Donald Trump, exempting the Oklahoma facility from requirements under a federal biofuels law, according to two industry sources briefed on the matter.

The waiver enables Icahn’s CVR Energy Inc (CVI.N) to avoid tens of millions of dollars in costs related to the U.S. Renewable Fuel Standard (RFS) program. The regulation is meant to cut air pollution, reduce petroleum imports and support corn farmers by requiring refiners to mix billions of gallons of biofuels into the nation’s gasoline and diesel each year.

The Small Refiners Coalition, which represents companies that operate small refining facilities, said the EPA is required by law to help small refineries struggling with these regulations and that such exemptions are crucial to their financial well-being. It applauded EPA Administrator Scott Pruitt for protecting small refineries, regardless of ownership, from the RFS requirements.

But the exemption for CVR’s Wynnewood, Oklahoma plant prompted criticism from a corn state lawmaker and the powerful corn lobby, which has already accused Trump’s EPA of overusing the hardship waiver program in a way that hurts demand for ethanol."

Jarrett Renshaw and Chris Prentice report for Reuters April 30, 2018.