The White House brought together the oil and ethanol industries for a preliminary discussion on the Renewable Fuels Standard. Refiners say they can’t afford the RFS compliance costs. The biofuels industry insists it must have the mandates in the RFS to keep expanding and growing biofuels.
Staffers for Senators Ted Cruz and Pat Toomey were there to make a case for refiners. Senators Chuck Grassley, Joni Ernst, and Deb Fischer were there to represent corn states. Ethanol producers and supporters have been doubtful about the possibility of brokering a deal with the oil industry. Grassley says he’s open to discussion but hasn’t really seen a proposal he could agree on.
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.
Grassley says corn state Senators are walking a tight rope with any deal.
Oklahoma Senator Jim Inhofe wouldn’t reveal any details of a plan he’s working on to address some of those issues.
Grassley says he can’t formulate any impression until he sees more. Inhofe did say any plan would have to address the ever-increasing cost of buying biofuel credits the EPA uses to ensure that refiners are blending the required amounts of biofuels into the nation’s fuel supply.
