Trump letter to industry comes amid some oil industry calls for repeal, change
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President Donald Trump reaffirmed his support for U.S. ethanol in a letter Tuesday, dipping into the industry’s battle with independent oil refiners and billionaire Carl Icahn over whether parts of a federal mandate should be changed.
Trump sent the letter during the National Ethanol Conference in San Diego, saying that he regrets not being able to attend. Renewable Fuels Association (RFA) President and Chief Executive Officer Bob Dinneen read the letter aloud.
The timing of the letter comes a day before the Environmental Protection Agency (EPA) closes public comments on whether it should grant an Icahn and oil refiner-led push to move the onus on who should be responsible for adhering to the Renewable Fuel Standard (RFS). Biofuel industry proponents have resisted the change.
Prices for compliance credits have plunged since Trump’s election on speculation that his administration would be receptive to changing the program. Icahn, who owns an 82 percent stake in CVR Energy Inc., is a special adviser to Trump on regulations.
“Rest assured that your president and this administration value the importance of renewable fuels to America’s economy and to our energy independence,” Trump wrote. “As I emphasized throughout my campaign, renewable fuels are essential to America’s energy strategy.” Link to letter. “As I emphasized throughout my campaign, renewable fuels are essential to America’s energy strategy,” Trump said, referring to statements he made during the Iowa caucuses in the lead up to his victory in November. He also vowed to work with the ethanol industry’s lead trade group, the Renewable Fuels Association, to “identify and reform ... overzealous, job-killing” regulations that have harmed the renewable fuels industry.
Trump said he will ensure the RFS stays intact. The renewable fuel industry has been leery of Pruitt because of past comments he made opposing the agency’s implementation of the RFS program.
The oil industry has called for the program to either be repealed or significantly reformed over fears that too much ethanol could harm vehicle engines and place refiners on the hook for major legal claims.
RFS proponents give bottom line. “The RFS has cleaned the air, reduced our dependence on foreign oil and boosted local economies,” said Bob Dinneen, the Renewable Fuels Association’s president and CEO. “Donald Trump understands all this. Consumers benefit from this national policy and our industry looks forward to continuing to be the lowest cost, highest octane fuel in the world.”
Comments: While there will be efforts in Congress, especially in the House, for changes to the RFS, congressional sources say the votes are not in the Senate for any major changes, if any.
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