The Trump Administration will scale back hardship waivers under the Renewable Fuel Standard.
A source tells Reuters that the move includes counting ethanol exports towards biofuel usage quotas set under the RFS. The move seeks to ease tension between the oil and corn industries which have been at odds for months regarding the RFS, including multiple White House meetings.
The corn industry considers the exports action against the law, arguing that the RFS quota is for domestic use, not international. Biofuels groups say the move could spark further trade tensions. But the action by the White House would also allow for year-round sales of E15, a win for ethanol producers.
Senator Chuck Grassley says the hardship waivers are taking away corn demand and he says will call for Environmental Protection Agency Administrator Scott Pruitt’s resignation if Pruitt pushes changes that “permanently cut ethanol by billions of gallons.”