EPA inspector general finds lack of compliance with agency's RFS reporting

September 28th, 2016 by Dakota Software Staff Industry News

The Environmental Protection Agency usually operates in a watchdog role, citing businesses for failing to follow the environmental regulations it develops and enforces. Recently, the federal agency was sanctioned by its Inspector General for failing to follow its own rules related to mandated reporting for the Renewable Fuel Standard. As Forbes pointed out, the RFS contained a number of reporting requirements to be carried out by the EPA. The environmental regulator is required to provide a document detailing the environmental impact of the standard to Congress - and by extension the general public - every three years.

The investigation by the IG found no report had been issued since 2011 and the EPA wasn't working on crafting a new report at the time of the investigation. Following the three-year timeline contained in the RFS, that means the EPA missed a reporting deadline in 2014. Additionally, the EPA appeared to be off track for delivering a report by 2017, at least at the time of the IG's inspection. It remains to be seen if the EPA can put together the necessary info for a new report in time for that deadline, although the agency told the IG it would start following the reporting calendar again as part of the inspection's resolution.

Issues with lack of backslide reporting appear as well
The EPA also failed to meet a separate informational requirement related to backslide concerns, as reported by the High Plains/Midwest Ag Journal. The federal environmental regulator's Office of Air and Radiation didn't compile necessary information about potential issues where the standard could potentially create more pollution or other undesirable outcomes, the IG's report said. The text of the report took a strong tone, noting the lack of communication about missing the reporting deadlines as well as the lack of actual information to share.

"Not having required reporting and studies impedes the EPA's ability to identify, consider, mitigate and make policymakers aware of any adverse impacts of renewable fuels," the report said, according to the High Plains Journal. "Further, the EPA has no record of having communicated to Congress its decision to not meet its congressional reporting requirement. As a result, the EPA has not met the intent of the [Energy Independence and Security Act] requirements - to provide science-based information on RFS program impacts for decision-makers of U.S. biofuel policy."

With concerns about the efficacy of the RFS coming from segments of the general public as well as some businesses, there are many considerations to make on the EPA's part. Forbes mentioned research from George Washington University that indicates biofuel production may actually increase pollution, and a lack of reporting only makes determining the validity of those concerns more difficult.

EPA says it will fulfill requirements, but efforts will take time
The High Plains Journal said the IG's report about the EPA's lack of compliance has largely been resolved, at least in concept, through the EPA's commitment to a number of recommendations listed in the document. The EPA will start providing the triennial reports to Congress again, begin new work on anti-backsliding studies and determine if changes are needed to mitigate air quality concerns. The federal environmental regulator said the backsliding study wouldn't be complete until 2024, due to a number of intermediary steps needed to accurately determine the effects of the RFS on air quality. The report is considered resolved because of the EPA's responses, although there's a caveat: The agency must actually complete the agreed-upon actions by the deadlines it offered to the IG.