Sen. Barrasso calls for waiving renewable volume obligations for refineries during COVID-19 crisis
U.S. Sen. John Barrasso (R-WY) voiced his support for waiving Renewable Volume Obligations for refineries due to the severe economic hardship caused by the COVID-19 pandemic
It comes after five state governors sent Environmental protection Agency Administrator Andrew Wheeler a letter calling for a waiver of the renewable volume obligation (RVO). The RVO dictates how many gallons of biofuel refiners will add to the fuel mix. Gas importers and exporters are required to comply with Renewable Volume Obligations.
“I fully endorse the governors’ request to reduce costly biofuel mandates on America’s refineries,” Barrasso, chairman of the Senate Committee on Environment and Public Works (EPW), said. “As the global coronavirus pandemic continues, fuel demand has dropped dramatically. At the same time, compliance costs under the Renewable Fuel Standard have quadrupled since the start of the year. American refineries are now fighting for their lives. EPA has the authority to reduce biofuel mandates on account of severe economic hardship. If there ever was a time for EPA to use this authority, it is now.”
The EPW Committee has jurisdiction over the EPA and the Renewable Fuel Standard (RFS) program, Barrasso said.
The RFS program was created to increase the amount of biofuels in gasoline.
“Today, about 10 percent of fuel sold as motor gasoline is corn-based ethanol,” the Energy Information Administration said. “Renewable Identification Numbers (RIN) and Renewable Volume Obligations (RVO) are the mechanisms the EPA uses to implement the RFS program. RVOs are the targets for each refiner or importer of petroleum-based gasoline or diesel fuel, while RINs allow for flexibility in how each of them may choose to comply.”
