The oil industry and allies on Capitol Hill are pushing for the Trump Administration to defend its decision to exempt some oil refineries from blending requirements under the Renewable Fuels Standard.
The administration faces a Monday deadline to request the full 10th Circuit Court of Appeals to rehear a decision that threatens to curtail the use of the waivers.
Republicans from oil-patch states, including Ted Cruz of Texas and James Inhofe of Oklahoma, have warned the administration and the Environmental Protection Agency that the decision will have consequences if it’s implemented around the nation.
They say potential negative impacts could include strain on refineries, cause a rise in gasoline prices, and put jobs in jeopardy.
Although federal law authorizes the EPA to exempt small refineries facing “economic hardship,” a January ruling by a three-judge panel in the 10th Circuit Court places limits on the agency’s ability to hand out large numbers of the waivers.
If the decision stands, officials believe only two small refineries would still be eligible for hardship relief.
Oil industry allies are hoping that the president will intervene and order a shift in the course of the discussions.