A group of senators from U.S. corn states have asked President Donald Trump for a meeting about the nation’s biofuels law, amid expectations the administration will soon act to lower the regulation’s costs to the oil refining industry.
The group of Republican senators wrote a letter to Trump on Thursday in which they opposed a plan he is considering to limit the price of credits that oil refiners must acquire to comply with the Renewable Fuel Standard.
The letter was written by Senators Chuck Grassley and Joni Ernst, of Iowa; John Thune, of South Dakota; Roy Blunt of Missouri; and Deb Fischer of Nebraska.
The credits are currently trading around 42 cents each, having fallen nearly 40 percent in recent weeks amid the political uncertainty.
In the closed-door meeting this month, Trump also supported expanding sales of high-ethanol gasoline – a tweak long-sought by ethanol producers, according to the source.
The Environmental Protection Agency bans the use of gasoline containing 15 percent ethanol during the summer months, a measure intended to reduce ozone emissions and smog during the peak driving season.
The corn-state senators, along with the biofuel industry, like the idea of lifting the summer ban on 15-percent ethanol blends, but oppose any credit price caps. They argue the proposed caps would take away any incentive to blend higher volumes of ethanol.
“@realDonaldTrump I want to shake up what u might be planning abt RINs cap for a short period. It will be CATASTROPHIC to ethanol,” Grassley wrote. —Reuters