Trump heeds advice to delegate RFS reform to Congress: report

29 Mar 2018 |

US President Donald Trump's advisers have urged him to let Congress take the initiative in efforts to reduce the cost of renewable fuels standard for refiners, and to use executive powers only if lawmakers fail to deliver progress, Reuters reported Thursday, citing sources familiar with the talks.

The report said the proposed strategy underlines the difficulties in reforming the RFS, which compels refiners to pay for the price of blending biofuels such as corn-based ethanol into the fuel supply. The RFS provides a boon for agribusiness but is a major cost for refiners.

The White House has hosted several meetings this year in a bid to forge compromise including potential caps on the price of blending credits, known as RINs, which refiners must obtain to demonstrate compliance.

But the huge chasm in positions between the corn and oil lobbies has made compromise next to impossible, prompting Trump to heed his advisers' urgings that the issue be left to Congress to decide, Reuters reported.

Trump would still have the option to impose a compromise if Congress fails to agree a workable solution the news agency added, citing insiders. 

 

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