EPA administrator Scott Pruitt has granted valuable exemptions from renewable fuel requirements to an oil refinery owned by Carl Icahn–the billionaire investor and former adviser to President Trump.
Pruitt granted a waiver from the rules in recent months to CVR Energy Inc., according to a report on Monday in Reuters citing two unnamed industry sources.
The Obama era program was created to force petroleum refineries to either use more biofuel or purchase biofuel credits in an effort to reduce energy emissions. Waivers to the program are granted by the EPA to small refineries that can demonstrate financial hardship.
In recent days, CVR reported making $23 million in profit during the first quarter, as Reuters reported. The company also revised down the estimated compliance cost of adhering to the so-called Renewable Fuel Standard—to $80 million from a previous forecast of $200 million.
Icahn was an early supporter of Trump’s presidential campaign and served briefly as a White House adviser. He resigned the role in 2017, after lawmakers raised concerns about a potential conflict of interest.
In December 2017, Icahn’s company disclosed that the investor was being investigated by the Department of Justice for his “activities regarding the Renewable Fuel Standard,” as Bloomberg reported at the time.
Pruitt was pressed about the waiver last week, when he testified before a House Energy and Commerce committee panel.
He admitted to meeting with representatives from CVR in June 2017, when asked by Rep. John Sarbanes (D-Md.).
Pruitt also said he “wasn’t sure” if the company applied for a waiver, but deflected when asked directly by Sarbanes if one was granted.
“These exemptions are governed by statute, as you know,” the EPA administrator replied.
In recent weeks, Pruitt has been dogged by reports of questionable ethical practices.
