U.S. biofuels industry, advocates see
hope in Pruitt's successor
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[July 07, 2018]
By Chris Prentice and Jarrett Renshaw
NEW YORK (Reuters) - Corn farmers and
biofuels producers cheered the resignation of U.S. Environmental
Protection Agency chief Scott Pruitt in the hope that his successor may
give them more access and fewer threats to reducing domestic
requirements.
Pruitt led U.S. President Donald Trump's aggressive efforts to roll back
environmental protections. He drew the ire of farmers and antagonized
their powerful lobby in Washington when he relaxed enforcement of a
mandate to include biofuels such as ethanol - made from grains - in the
country's gasoline and diesel supply. Biofuels are an important source
of demand for corn.
Pruitt resigned on Thursday after heavy criticism in Congress for
ethics-related controversies.
His temporary replacement is Deputy Administrator Andrew Wheeler, a
former Senate staffer and lobbyist who had done a stint at the EPA
earlier in his career. He is a long-time Washington insider with
connections to oil, coal and biofuels.
Wheeler is best known for his work with coal firms such as Murray
Energy. He has also consulted for biofuels association Growth Energy and
agricultural merchant and biofuels producer Archer Daniels Midland Co,
according to his public financial disclosures.
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He takes the helm at a time of uncertainty over the agency's approach to
the U.S. Renewable Fuel Standard (RFS), a 2005 law that requires greater
use of biofuels such as ethanol in the nation's fuel.
Midwest farmers and their representatives say Pruitt weakened the RFS by
trying to lower the costs of compliance for oil refiners.
Wheeler may pursue some of the similar goals, biofuels groups say, but
they believe he will be more transparent and not "color outside the
lines" as they claim Pruitt did.
It is unclear exactly what Wheeler's plans are for the RFS, but during a
Senate hearing in November, he said in response to questioning that he
respected the program as the "law of the land."
"No one can bank on the outcome, but a fair process is bankable with
Andy Wheeler," Brooke Coleman, head of the Advanced Biofuels Business
Council, said on Friday.
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![](../images/070718pics/news_k19.jpg)
Then Environmental Protection Agency (EPA) Administrator Scott
Pruitt walks during a picnic for military families celebrating
Independence Day at the White House in Washington, U.S., July 4,
2018. Picture taken July 4, 2018. REUTERS/Joshua Roberts
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Wheeler is more of a pragmatist and likely to pay more heed to the
way things are typically done in Washington, said Michael McAdams,
head of the Advanced Biofuels Association.
"The difference is ... Pruitt had an absolute disdain for
Washington," McAdams said. "Pruitt went behind closed doors and took
an authoritative position. That's not how Andy will operate."
Biofuels groups said Pruitt's decisions on the mandate were curbing
domestic ethanol consumption. Under Pruitt, the EPA issued mass
waivers for small refineries from their annual requirements to use
biofuels. Ethanol and farm groups have sued the EPA over the
refinery exemptions.
Ongoing discussions among refiners, farm groups, politicians and
officials on changes to the RFS have led to a growing rift between
two of Trumps constituencies: the oil and farm lobbies.
Trump himself has personally waded into the debate but has been
unable to broker a deal that would satisfy both sides. They reached
an impasse a month ago when powerful Iowa Republican Senators
Grassley and Joni Ernst fought against some of the changes being
pushed by Republican Senator Ted Cruz from Texas and oil refiners.
In a Tweet on Thursday afternoon Ernst said: "I have confidence that
Andrew Wheeler will be a good partner at #EPA, and I look forward to
working with him on the #RFS."
The Senate confirmed Wheeler in April with a 53-45 vote, that went
mostly along party lines.
(Editing by Simon Webb and Marguerita Choy)
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