Trump rejects deal allowing exported biofuel RINs for compliance
June 6, 2018
BY Erin Krueger
Sens. Chuck Grassley, R-Iowa, and Joni Ernst, R-Iowa, broke news June 5 that President Donald Trump has rejected a deal on the Renewable Fuel Standard that would have implemented year-round E15 availability, but also allowed renewable identification numbers (RINs) attached to exported biofuel volumes to be used to meet RFS compliance obligations. According to Grassley, rejection of the deal means the ethanol industry must continue to fight for year-round E15.
“Pres Trump helped farmers by rejecting bad ethanol deal. I appreciate. GREAT NEWS,” Grassley tweeted.
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“[President Trump] has said he ‘looovves the farmers!’ #Iowa is feeling that love today, as the President just assured me he ‘won’t sign a deal that’s bad for farmers!’ Thank you, Mr. President!” Ernst tweeted.
Grassley held a media call elaborating on Trump’s action and explaining his support for Trump’s rejection of the RFS deal. “I thank President Trump for helping farmers by rejecting once and for all a proposal that would have undermined the RFS and really hurt ethanol,” Grassley said, noting he appreciates Trump’s commitment to not making any changes to the RFS that would hurt farmers.
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Moving forward, Grassley said he will “continue to push for changes to the way the so-called hardship waiver process is implemented.” To date, waivers approved by U.S. EPA Administrator Scott Pruitt have uncut the 15 billion statutory mandate for conventional biofuels, effectively rolling it back to 13.8 billion gallons, Grassley explained. “This all runs contrary to the spirit and letter of the RFS law,” he said.
According to Grassley, he will also continue his work in support of year-round E15 sales. While the White House’s RFS deal initially looked like a victory for ethanol due to its inclusion of year-round E15 availability, Grassley indicated that the positive benefits of Reid vapor pressure (RVP) relief for E15 wouldn’t have been enough to offset damage caused by allowing exports to count towards annual blending quotas. “That’s why the deal would have been a net loss, and that’s why I’m glad the president rejected it for good,” Grassley said.
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