Thune: Year-Round E15 Sales Will Require Refinery Compromises

South Dakota Senator John Thune says that for year-round E15 sales to pass in the Senate, compromises will be necessary regarding small oil refiners. The Renewable Fuel Standard, overseen by the Environmental Protection Agency, requires oil refiners to blend a minimum amount of renewable fuels into their supply or pay for compliance credits.

Refineries processing 75,000 or fewer barrels per day can obtain an exemption if they show that complying with the standard would cause them 'disproportionate economic hardship.' The current law allows no automatic exemptions. Small refiners must prove a hardship and can receive full or half exemptions.

The Senate version of the farm bill under consideration by the Ag Committee grants automatic full exemptions to small refineries without changing rules regarding aggregate versus individual facilities, but would require some reallocation of exempted amounts to other refiners.

Thune said that E15 supporters need senators on board from states with small oil refiners, listing Montana, Wyoming, Oklahoma, Arkansas, and Tennessee as key states. He stated, 'At some point, we've got to get this done,' adding that it becomes a decision of what can be gotten in terms of votes.