Governor Perry of Texas had filed a request to waive 50% of the national volume requirements for the renewable fuel standard (RFS).  The Governor’s Waiver Request cited to the following factors to support issuance of a waiver:

  • Since ethanol mandates were instituted, more of the U.S. corn crop is being diverted to produce fuel
  • 25% of the corn crop was diverted in 2007 and its projected to rise to 30 to 35% in 2008
  • Corn prices have skyrocketed, going from $2.06/bushel to at least $4.00/bushel
  • Globally, corn prices are up 138% over the past three years
  • Global food prices have increase 83% over that same time period
  • Translates to a $1.17 billion dollar negative impact on the current Texas economy

The RFS mandate came about through the Energy Policy Act of 2005 and was expanded in the Energy and Independence Security Act of 2007.  The total volume of renewable fuels, such as ethanol and biodiesel, mandated by law to be blended into the fuel supply is 9 billion gallons in 2008 and 11.1 billion gallons in 2009.

EPA denied the request the RFS waiver request based upon its analysis of the evidence suggesting a waiver would have only a nominal impact on corn prices (on average $0.30 per bushel of corn).  The EPA concluded there was no evidence to support the claim the RFS mandate was causing "severe harm" to the economy of a State, region, or the United States.

I would guess this will not be the last waiver request submitted.  However, in denying the request, EPA also provided insight into its interpretation of the requirements for issuing a waiver.  The legal standard articulated with be very difficult to meet. Generally, EPA found it has only narrow waiver authority:

  • EPA would have to determine that the implementation of the mandate itself would severely harm the economy; it is not enough to determine that implementation of RFS would contribute to such harm;
  • EPA would also have to find that there is a generally high degree of confidence that the RFS is severely harming the economy; and
  • This requirement calls for a high threshold for the nature and degree of harm that would support the issuance of a waiver based on "severe harm" to the economy of a State, region, or the United States.

PTIO Program is Launched-  Effective June 30, 2008 Ohio EPA finalized this new permit program which combines the Permit to Install (PTI) and Permit to Operate (PTO) into a single permit for non-Title V facilities.  Facilities will no longer have to apply for a separate PTO.  This program is intended to deal with Ohio EPA’s backlog of PTOs which is in the thousands.  Ohio EPA’s new PTIO application is up and must be used for new permits.

Electronic Reporting through Air Services– Effective June 30, 2008 Ohio EPA transitioned from its STARship electronic air reporting software to Air Services.  Air Services is part of Ohio EPA’s larger effort to transition to more web based business interaction with the regulated community.  Following the release of the Air Services software, both Title V and Synthetic Minor Title V facilities will be required to use the eBusiness Center: Air Services for all emissions reporting, Title V Annual Compliance Certifications, Title V and other permitting applications.

Electronic Reporting of Surface Water Reports-  If you are using paper reporting or SWIMware to submit monthly-operating-reports (MORs) for NPDES permit compliance you need to quickly transition to Ohio EPA’s new electronic reporting system.  Ohio EPA indicates it expects to cease accepting MORs by "end of the  summer". SWIMware has been replaced by the new online system called e-DMR, Electronic Discharge Monitoring Reporting System. The term, MORs (Monthly Operating Reports) is now being referred as DMRs (Discharge Monitoring Reports). The new reporting system is entirely web-based and accessible via any internet connection.

Ohio Diesel Grant Awards Announced-  On July 29th the Ohio Department of Development announced the recipients of the grants for diesel retrofit and repower projects for vehicles and fleets.  The award recipients originally submitted applications back in February.  The implementation of the Diesel Emission Reduction Grant (DERG) program was plagued with a number of issues that resulted in the rejection of a large number of applications and delay in announcing awards.  The Ohio Diesel Coalition is working in conjunction with the various State agencies to improve the grant process in the second round.  The Department of Development is expected to release the second request for proposals (RFP) in August. 

Brownfield Redevelopment- Clean Ohio Assistance Fund (COAF)-  As of July 1, 2008 the Ohio Department of Development has begun accepting applications for COAF grants to pay for Phase II site assessments (up to $300,000) and clean ups (up to $750,000) of brownfield properties.  ODOD has approximately $11.4 million to award.  To qualify the property must be in a designated priority investment area (see map).