Source: POLITICO'S MORNING AGRICULTURE, 5/2/18

Sen. Chuck Grassley told reporters on Tuesday he hopes to give EPA new instructions on the Renewable Fuel Standard exemption process for small refineries as part of this year's appropriations process. The corn-state senator is furious with EPA Administrator Scott Pruitt for exempting dozens of refineries from the biofuel program and says he will seek to change report language written alongside appropriations bills in 2015 and 2016 that EPA and DOE have used in part to justify those waivers. 

Even if successful, the changes Grassley envisions could come too slowly to help corn farmers and ethanol producers this year, Pro Energy's Eric Wolff writes. Appropriators are expected to issue an Interior-EPA funding bill in coming weeks.

Grassley may have some help as he tries to change the congressional guidance. "I'm not sure what the senator has in mind here, but he could find common ground with several refiners who might support his efforts to eliminate this component of the RFS in addition to making other structural reforms of the program," one refiner whose operation received an exemption told Eric.

Biofuels group suing EPA over waivers: The Advanced Biofuels Association, which represents advanced biofuels makers, is suing EPA for allowing far more small refiners to duck their RFS obligations, Michael McAdams, head of the association, tells our Pro Energy colleagues. Ethanol producers of all stripes are critical of EPA's expanded use of the waiver process, which the producers say is reducing ethanol blending and also violates President Donald Trump's promise to corn states to protect the program. Reuters first reported the lawsuit.

Refiners already playing defense: The petitioner's statement in the case appears to reflect "a fundamental misunderstanding of the hardship exemption - EPA's current actions are fully consistent with the Clean Air Act," said Scott Segal, an attorney with the firm Bracewell who works with refiners. "The small refinery exemption provision is well established."