Nearly 100 businesses and organizations representing biofuels sent a letter to the White House last week thanking President Trump for his support of the Renewable Fuel Standard (RFS).
The letter also offered the president “some insights on how to maintain growth under the program while minimizing any potential for undue financial stress in certain parts of the refining industry” in reaction to Sen. Ted Cruz’s continued hold on Bill Northey’s nomination to USDA over concerns about the RFS and RIN prices.
The biofuels industry has for years advocated for policies that would bring down the price of RINs. For example, the ethanol industry has spent years trying to secure regulatory parity for Reid Vapor Pressure (RVP) between ethanol-blended fuels and standard gasoline fuels. Outdated RVP rules needlessly constrain ethanol blending and put more pressure on RIN markets.
“The ready solution to Senator Cruz’s stated concerns is to blend more ethanol and send clear regulatory signals about the future growth of biofuels under the RFS. RVP relief would immediately add another three months’ worth of E15 sales to the market,” said Growth Energy CEO Emily Skor.
The letter also suggests asking the EPA and the U.S. Commodity Futures Trading Commission (CFTC) to improve transparency to prevent market manipulation, and extending the biodiesel credit and the second-generation biofuels producer tax credit (PTC).