Several ethanol groups are criticizing the Environmental Protection Agency's decision to exempt more than two dozen refineries from federal ethanol-blending requirements, with one group challenging the agency in court.

EPA has exempted perhaps as many as 25 small refineries from a federal law requiring ethanol be blended with gasoline and other motor fuels, citing the economic hardship of complying with the mandate. The agency has not released the exact number of exemptions or named which refineries were exempted, arguing that doing so would reveal private business information, Environment & Energy News reported.

However, the news agency Reuters learned that three waivers were granted to refineries owned by Andeavor, which is among the nation's largest refiners. In addition, the U.S. Department of Justice is investigating with an oil refinery owned by billionaire Carl Icahn was improperly granted a waiver. Icahn is a staunch supporter of President Donald Trump who has used his political connections to try to ease ethanol-blending requirements for refineries. http://bit.ly/2jtwzq5

The ethanol industry association Growth Energy is among Icahn's critics, with CEO Emily Skor noting in a statement that Icahn was an advisor to Trump who interviewed and recommended Scott Pruitt for the position of EPA administrator.

Icachn "stands to make millions more from a secret EPA handout," Skor said. "This is just one more example of the EPA taking money out of the pockets of American farmers and undermining President Trump's promises to rural communities."

An analysis recently released by Renewable Fuels Association concluded that the EPA exemptions lowered volumetric obligations for blended fuel by at least 1.6 billion gallons in 2016 and 2017. RFA CEO Bob Dinneen condemned Pruitt's "secret small refiner bailouts."

"These moves are hurting America's biofuel producers, farmers, and ultimately consumers, and they stand in direct opposition to President Trump's commitment to protect the (Renewable Fuel Standard)," Dinneen said.

The Advanced Biofuels Association announced Thursday it was challenging EPA's process for granting blending waivers. Pruitt appears to be granting waivers "in an arbitrary and capricious manner to undisclosed parties behind closed doors with no accountability for its decision-making process," ABFA President Michael McAdams said.

The lawsuit was filed in the U.S. Court of Appeals for D.C.

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