Ethanol Industry Pushing for Status Quo

ethanol

The ethanol industry and its backers in Congress are keeping the heat on Trump Administration officials not to cap ethanol credits as the oil industry wants, and instead back the renewable fuels program as written. It appears, the pressure campaign may be having some impact.

Environmental Protection Agency Administrator Scott Pruitt recently suggested there may be other ways to bring down RIN prices the oil industry complains about—perhaps more transparency of the RINs market, maybe targeting speculators.

USDA Secretary Sonny Perdue just days ago, dismissed in a USDA Radio story recent public skepticism about his support for the Renewable Fuels Standard.

And at a Senate Commerce Committee hearing on infrastructure last week, Illinois Senator Tammy Duckworth told Commerce Secretary Wilbur Ross…

But, unsure Ross or other Trump officials won’t hedge again if the President presses them to find a way to help the oil industry, Duckworth asked Ross for his word, he will continue to fight demands to cap RINs…

Secretary Perdue also raised doubts about his RFS support at this year’s Commodity Classic conference, questioning the connection between RIN prices and ethanol demand.

But Duckworth also put Perdue on the record…

Iowa Senator Chuck Grassley defended Perdue last week after criticizing Perdue’s earlier RINs stance, arguing Perdue was just ‘thinking through’ the economics of capping RIN prices and was probably under pressure by the president to resolve the issue.