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Potential Deal to Change the Renewable Fuels Standard

A Bloomberg Report says billionaire investor Carl Icahn and a leading biofuels group have put together an agreement for the Trump administration to revamp the Renewable Fuels Standard.

People familiar with the agreement told Bloomberg it would give both parties long sought after changes to the RFS.

The groups have sent a memorandum to the White House which could give guidance on how the Environmental Protection Agency could implement the changes.

Icahn is a majority owner in CVR Energy, who has long pushed for shifting the burden of complying with biofuel quotas from refiners to blenders.

Refiners have now won agreement from the Renewable Fuels Association regarding shifting the point of obligation.

The RFA now supports the idea in return for a pledge regarding a waiver allowing gasoline blends with 15 percent ethanol to be sold year-round in U.S. markets.

“I was told in no uncertain terms the point of obligation is going to be moved,” said RFA Chief Bob Dineen, “and I wanted to see one of our top priorities moved as well.”

The waiver granting year-round access to E-15 would “greatly expand market opportunities for ethanol, and I think that’s a darn good thing for our industry.”

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