Sen. Barrasso applauds reversal of EPA decision to deny hardship waiver to two Sinclair Oil refineries

U.S. Sen. John Barrasso (R-WY) voiced support this week of a U.S. Circuit Court decision to overturn a recent Environmental Protection Agency (EPA) denial of hardship waivers under the Renewable Fuel Standard (RFS) to two Sinclair Oil-owned refineries in Wyoming, despite initial recommendations made by the Department of Energy (DOE).

“I’m glad the court has recognized this and given EPA an opportunity to follow the law,” Barrasso said.

Under provisions of the RFS, small refineries may apply for waivers with the EPA under the basis of “disproportionate economic hardship.” While the DOE granted partial waivers to the two refineries in 2014 and 2015, the EPA denied Sinclair’s petitions.

On April 4, Barrasso, along with U.S. Sen. Shelley Moore Capito (R-WV), sent a letter to current EPA Administrator Scott Pruitt regarding hardship waivers for small refineries under the RFS.

According to court documents, Sinclair claimed that the EPA’s position was that “no matter how disproportionate the economic impact of the RFS program on other refineries, there can be no ‘disproportionate economic hardship’ unless compliance with the RFS program was so costly the it will eventually force a small refinery to shut down,” and argued that position was contrary to the plain language of the term “disproportionate economic hardship.”

Sinclair also claimed that the EPA’s “viability” test not only failed the agency’s statutory duty to compare the refinery at issue with its competitors, but also required significantly more hardship to the refinery than the statute instructed, to which the court agreed.