Senator Chuck Grassley of Iowa says the White House has assured him no change is imminent on who in the nation?s fuel supply chain is responsible for blending ethanol into gasoline.
Grassley told farm reporters that he spoke directly with the White House about rumors that the new administration plans to change the so-called Point of Obligation for blending fuel.
“I had a conversation with a high level person at the white house and that person told me no executive order making the change is imminent.?
But Grassley says he told the White House contact how damaging the change would be to ethanol by switching the Point of Obligation from refiners to blenders or retailers.
“Policing it would be much more difficult when you’ve got thousands of retailers that would have to report. You can think of the book work for those thousands of retailers compared to fifteen or twenty big units that have to keep track of it now and prove it?s actually mixed.?
Grassley says for an administration that wants to help small business, the change would hurt small business, but help one of President Trump?s top supporters, investor Carl Icahn.
“I don’t have anything against Icahn he’s a successful business person and I can’t bad mouth that. He wants to be an adviser to the president on regulations, there is nothing wrong with that, but I don’t think he should take advantage of his closeness to the president to hurt commodity ethanol that the president is committed to maintaining.?
Grassley says he hopes the issue is behind him, but says ethanol state Senators are now drafting a letter to President Donald Trump, and must fight to hold their ground. He also says Environmental Protection Agency Administrator Scott Pruitt did not take a position on ?Point of Obligation? in a meeting with senators before his confirmation.
The White House is said to be reviewing Icahn?s request, but has no position or plans to make a change at this time.
Iowa Governor Terry Branstad says there is no backroom deal to make changes to the Renewable Fuel Standard.
Branstad, the U.S. Ambassador to China nominee, said he is aware of reports of a deal, but has been assured by the White House the rumors ?are not true,? according to the Des Moines Register.
A report of a deal to change the burden of blending ethanol last week sent the renewable fuels industry off balance. Trump Advisor Carl Icahn has requested the change, but apparently, no deal is the works at this time.
Iowa Senator Chuck Grassley echoed Branstad?s comments on Tuesday, saying the White House has also assured him there is no agreement to change the RFS. However, earlier in the week, the White House did confirm it was reviewing the proposal, but has no position on the issue.
