UPDATE 1-U.S. EPA revives provision that could name oil refiners applying for biofuel waivers

The U.S. Environmental Protection Agency on Friday took the first step to revive part of a rule that could, if finalized, reveal the names of oil refineries which applied for exemptions from the nation's biofuel laws. The move is seen as a win for the corn industry, which has criticized the waiver program due to its lack of transparency. The EPA only in 2017 first began releasing the number of waiver petitions it has received and granted.

Refiners are required to blend biofuels into the nation's gasoline pool, but small operations can apply for exemptions. The Trump administration made extensive use of such waivers in the last two years, saving refiners money but angering the corn lobby, particularly after major companies like Exxon Mobil Corp received exemptions for certain facilities. The ethanol industry claims the exemptions have been overused, threatening demand for corn-based ethanol at a time when farmers are already struggling.

On Friday, the EPA signed a Federal Register notice saying it is reopening the comment period for a provision in a rule related to the small refinery exemption program that was first introduced in 2016. The provision proposes to "codify a determination that basic information related to EPA actions on petitions for RFS small refinery and small refiner exemptions may not be claimed as confidential business information," according to the proposal on the Federal Registry website.

Under the U.S. Renewable Fuel Standard (RFS) program, refiners must blend certain volumes of biofuels like ethanol into their fuel each year or purchase credits from those that do. But small refineries with a capacity of less than 75,000 barrels per day (bpd) can obtain waivers if they prove that compliance with RFS would cause them significant financial strain. Under President Donald Trump's administration, the EPA has granted far more exemptions than in the past, including to plants of profitable oil giants such as Chevron Corp and Exxon Mobil.

EPA Administrator Andrew Wheeler, in an interview with Reuters on Thursday, hinted there could be fewer exemptions under his leadership due to the lower price of biofuel credits that have reduced economic hardship, which is one of the conditions for the exemption. (Reporting by Humeyra Pamuk; editing by Jonathan Oatis)