The Environmental Protection Agency (EPA) is working to find a solution for Renewable Identification Numbers, or RINs. However, oil and ethanol proponents resist any change which could impact their specific industry in the marketplace.
Senator Chuck Grassley (R-IA) says the debate has come a long way, but is still not over.
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Environmental Protection Agency Administrator Scott Pruitt visited his home state last week and spoke to the Radio Oklahoma Network about the renewable fuel battle.
Administrator Pruitt?s comments show the Trump Administration is looking for other solutions to end the fight, between oil and ethanol, over RINs. Senator Chuck Grassley says new proposals by Administrator Pruitt indicate the Administration may be softening its position – that a RINS price cap or waiver demanded by oil refiners is the only solution to the RINs fight against ethanol.
Grassley says he may have been too strong in his recent criticism of United States Secretary of Agriculture Sonny Perdue, who may have argued, at a White House meeting with the President, Administrator Pruitt and others, that a cap would not hurt ethanol if it was paired with an E-15 year-round waiver.
That?s after Secretary Perdue publicly questioned the economic link between RIN prices and renewable fuel volumes in the marketplace ? an issue Senator Grassley says Secretary Perdue had to ?think through.? G
rassley says others in the Administration are still listening to the oil industry?s point of view on capping RINS, even as a study by oil refiner Valero points to a possible ulterior motive.
A study by the University of Illinois concludes a 10 cent cap on RIN prices would be ?catastrophic? for the RFS, ?removing all incentives for blending E15 and E85.? An Iowa State University study pegs the loss at $750 million gallons or 25 cents per bushel of corn.
The Hagstrom Report states Senators John Thune (R-SD), Deb Fischer (R-NE), Chuck Grassley (R-IA), Joni Ernst (R-IA) and Roy Blunt (R-MO) on Thursday wrote President Donald Trump again stating their opposition to any cap on the price of the Renewable Identification Numbers (RINs) that underlie the Renewable Fuel Standard (RFS).
Sources tell The Hagstrom Report that discussions have been continuing among the White House, United States Department of Agriculture, Environmental Protection Agency, and oil and biofuels industries over conflicts about the RFS, but no White House meeting has been rescheduled since last Monday?s meeting was cancelled.
