The U.S. EPA has granted a biofuels exemption to an Oklahoma oil refinery owned by billionaire Carl Icahn, a former adviser to President Donald Trump. Icahn’s CVR Energy Inc. will be free from federal biofuels law requirements as a result of the financial hardship waiver.
The exemption will free the facility of costs reaching tens of millions of dollars ordinarily required by the U.S. Renewable Fuel Standard program, which is aimed at reducing air pollution and petroleum imports while supporting corn farmers by requiring refiners to mix billions of gallons of biofuels into the nation’s gasoline and diesel fuel supplies every year.
Such exemptions are often helpful to small refineries that utilize them in order to stay afloat financially, and according to the Small Refiners Coalition, EPA is required by law to help such struggling refineries. This announcement of exemption for a refinery not small in size and backed by deep pockets has prompted criticism from corn state lawmaker and a corn lobby, claiming the decision could hurt the demand for ethanol.
“Hundreds of millions-- and in some case billions-- of dollars in profits isn’t my definition of hardship,” said Sen. Chuck Grassley of Iowa. “President Trump promised to support home-grown biofuels, and Administrator Pruitt is breaking that promise.”
Liz Bowman, spokeswoman for EPA stated that the agency does not comment on specific refineries, but added that the criteria for selecting which refineries receive the exemption has not been altered from the process followed by previous administrations.
Icahn also finds himself in the midst of an investigation led by the U.S. Justice Department, stirring further controversy around the decision. The investigation is looking into Icahn’s potential role in influencing biofuels policy while serving as President Trump’s adviser, with some lawmakers worried he may have exploited his access to the president to benefit his investments, which Icahn has staunchly rejected.
