Overview
Title
To amend the Clean Air Act to modify the definition of small refinery for purposes of the Renewable Fuel Program, and for other purposes.
ELI5 AI
S. 4070 wants to change the rules for who can be called a "small refinery," like factories that make oil for cars, by saying it must be a small company that doesn't make too much oil or have too many workers. It also asks special helpers to make sure these small factories get help when they need it, but the rules aren’t very clear right now, which could make it harder and slower for them to get that help.
Summary AI
S. 4070 proposes changes to the Clean Air Act, focusing on the definition and regulation of "small refineries" within the Renewable Fuel Program. The bill seeks to redefine "small refinery" as a company that processes no more than 200,000 barrels of crude oil per day or employs fewer than 1,500 people. It also requires the Secretary of Energy to develop a methodology for evaluating exemption petitions from small refineries, which the EPA Administrator must use when reviewing these petitions. The proposed act is titled the “Supporting Energy in Rural America Act.”
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AnalysisAI
Summary of the Bill
The proposed legislation, known as the "Supporting Energy in Rural America Act," aims to amend the Clean Air Act, specifically altering the definition of a "small refinery" for the purposes of the Renewable Fuel Program. Under this bill, "small refinery" is defined as a refining company whose average daily crude oil throughput does not exceed 200,000 barrels or employs no more than 1,500 people. Additionally, the bill mandates that the Secretary of Energy develop a methodology for evaluating exemption requests under the Clean Air Act, and the Environmental Protection Agency (EPA) must use this methodology in conjunction with economic considerations when reviewing such petitions.
Summary of Significant Issues
One significant issue with this bill is its narrow definition of a "small refinery." By focusing solely on crude oil throughput and employee count, the definition may overlook other critical factors that influence what constitutes a "small" refinery. This could lead to some refineries being either unjustly included or excluded from certain benefits or exemptions under the Renewable Fuel Program.
Moreover, the process introduced for evaluating exemption requests is potentially problematic. The bill tasks the Secretary of Energy with developing a methodology without specifying clear guidelines, which could introduce inconsistencies and subjectivity in petition evaluations. Additionally, the broad term "other economic factors" lacks specific criteria, leaving room for varied interpretations that could result in arbitrary decision-making. Furthermore, the requirement for consultation with the Secretary of Energy might lead to delays due to increased bureaucratic processes.
Finally, the bill does not specify a deadline by which exemption petitions must be evaluated, risking potential delays that could impede operational planning and financial stability for refineries awaiting decisions.
Potential Impact on the Public
Broadly, the bill's impact on the public will likely be indirect, primarily influencing stakeholders within the energy and refinery sectors. However, by potentially altering the operational landscape for small refineries, there could be downstream effects on fuel prices or availability, which could impact consumers and industries reliant on these resources. If small refineries receive exemptions or benefits that allow them to remain operational and competitive, regions depending on these refineries for economic support could benefit from sustained employment and economic activity.
Impact on Specific Stakeholders
The bill could have varied impacts on different stakeholders. For small refineries, the proposed changes may offer a crucial lifeline by granting exemptions that alleviate the regulatory pressures of the Renewable Fuel Program. This could enhance their competitiveness against larger operations. However, the lack of clarity and potential for delays in evaluating exemption petitions might result in uncertainty and operational challenges, undermining these benefits.
Environmental advocacy groups may express concerns that expanding the definition of small refineries could lead to more facilities being exempt from renewable fuel standards, potentially undermining efforts to reduce emissions and promote cleaner energy sources. Conversely, energy sector stakeholders, particularly those in rural areas, might view this bill as a positive move towards supporting smaller businesses and promoting local economic stability.
In conclusion, while the "Supporting Energy in Rural America Act" aims to offer advantages to small refineries, the vagueness in definitions and procedural guidelines poses significant challenges. This could lead to uneven application and outcomes, affecting various stakeholders in the energy sector and potentially influencing broader economic and environmental considerations.
Issues
The definition of 'small refinery' in Section 2 is limited to crude oil throughput and the number of employees, which may not adequately capture all relevant factors that define a 'small' operation, potentially impacting which refineries qualify for specific exemptions or benefits under the Renewable Fuel Program.
The amendment in Section 2 introduces a requirement for the Secretary of Energy to develop a methodology for evaluating petitions, but the lack of clear guidelines or standards raises concerns about potential inconsistencies and subjectivity in how petitions are evaluated.
The term 'other economic factors' used in Section 2 for evaluating petitions is vague and lacks specific criteria, posing a risk of varied interpretations or exploitation, which could lead to arbitrary decision-making regarding exemptions under the Clean Air Act.
Section 2 requires consultation with the Secretary of Energy for petition evaluations, which could introduce bureaucratic complexity and potential delays, affecting the timely processing of petitions and industry operations.
The amendment does not specify a deadline for the Administrator of the Environmental Protection Agency to evaluate petitions, as noted in Section 2, which could result in indeterminate delays in decision-making for small refineries seeking exemptions.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The first section of the Act names it as the "Supporting Energy in Rural America Act," establishing its brief title for reference.
2. Small refineries under the Clean Air Act Read Opens in new tab
Summary AI
The text defines "small refinery" under the Clean Air Act as a company producing no more than 200,000 barrels of crude oil daily or employing no more than 1,500 people. It also outlines that the Secretary of Energy must create a method for evaluating exemption requests, requiring the Environmental Protection Agency to use this method and consider economic factors in its reviews.