The White House is hoping to play mediator between the oil and ethanol industries and brought them together Wednesday for a preliminary discussion on the Renewable Fuels Standard. Refiners say they cannot afford the RFS compliance costs. The biofuels industry insists it has to have the mandates in the RFS to keep expanding and growing biofuels. Senators Chuck Grassley, Joni Ernst, and Deb Fischer were there to represent corn states. Staffers for Senators Ted Cruz and Pat Toomey were there to make a case for refiners. Oklahoma Senator Jim Inhofe would not reveal any details of a plan he is working on to address some of those issues. He did say it would have to address the ever-increasing cost of buying biofuel credits the Environmental Protection Agency uses to ensure that refiners are blending the required amounts of biofuels into the nation’s fuel supply.
Ethanol producers and supporters have been doubtful about the possibility of brokering a deal with the oil industry. Biofuel providers are convinced the oil industry would squeeze them out of the nation’s fuel supply entirely if they got the chance to do so.
Source: NAFB News Service