Iowa Gov. Terry Branstad, the Trump administration’s nominee for U.S. ambassador to China, says he is assured that a change in the Renewable Fuels Standard sought by oil refiners “is not going to happen,” reported Radio Iowa. But a White House official told Reuters the proposal was under review, although the administration took no position “either way on this issue at this time.”
Ethanol trade groups splintered over the proposal last week. The plan by investor Carl Icahn, a special adviser to the White House, would shift responsibility for compliance with the so-called ethanol mandate to fuel blender and retailers. At present, refiners are the “point of obligation” for assuring that ethanol gets its guaranteed share of the gasoline market. They must buy credits, called RINs, if they don’t mix enough ethanol into fuel for cars and light trucks.
“It [the change] is not going to happen. I’ve been assured about that by a lot of people,” Branstad said at his weekly news conference in Des Moines. “We are pleased about that.” Radio Iowa said the governor told reporters that President Trump has delivered “a very clear message” of support for ethanol and will not support the change.
Meanwhile, Reuters cited two sources as saying administration officials are concerned about political backlash from biofuel makers and fuel marketers if Icahn’s idea is adopted. The EPA closed a comment period in late February on an Obama-era regulation against the change.