Chevron Corp (NYSE:CVX) and Exxon Mobil Corp )NYSE:XOM) have requested exemptions from a national biofuels policy that is normally granted to small refineries for financial reasons, according to a Reuters story.
The exemption would allow the companies to hold onto their blending credits, or the $1-per-gallon credit given to biodiesel blenders.
The U.S. Renewable Fuel Standard law requires oil refiners to either mix biofuels into their fuel or purchase government-granted credits from energy companies that blend the two.
The energy giants have asked for waivers from the U.S. Environmental Protection Agency for their smallest facilities. Chevron has a refinery in Utah that produces 54,500 barrels per day while Exxon has a 60,000 barrel-per-day refinery in Montana, according to Reuters’ sources.
The EPA granted an exemption to three refineries owned by Andeavor, which could save the company up to US$50mln.
The request has angered the corn lobby, which has a hand in producing corn-based ethanol.
“For these two behemoth oil companies to claim economic hardship is downright offensive and insulting to the hard-working farm families and ethanol producers that depend on the RFS,” Bob Dinneen, head of the Renewable Fuels Association told Reuters, noting that both companies are in the top 20 of the Fortune 100.
Shares of Chevron and Exxon were both up in Friday afternoon trading.