Iowa Sen. Chuck Grassley said during a morning teleconference that he doubts there is room for a compromise with oil-state senators over the Renewable Fuel Standard, and that there had been no discussion among senators about one. Four hours later, Agriculture Secretary Sonny Perdue said discussions were ongoing to resolve oil-patch complaints about exorbitant prices for the so-called RINs — credits — that allow refiners to show they are complying with the federal mandate to blend corn ethanol and biodiesel into the U.S. fuel supply.
Nine Republican senators met with President Trump last week to voice complaints about the expenses oil refiners face in complying with the RFS. Trump urged them to seek a solution with Midwestern senators. Asked today if discussions were underway, Grassley said that “at the member level, nothing” was happening, although staff workers were conferring. A longtime proponent of biofuels, Grassley said that in most so-called compromises, “Iowa loses. If Iowa would lose, then the president would lose” because he has endorsed ethanol repeatedly. “Trump’s support is pretty clear,” said Grassley.
Perdue, during a luncheon appearance at the National Press Club, said the USDA was working with the EPA and lawmakers to resolve the question of RIN prices. “There is a win-win in here,” said Perdue.
The oil industry has sought repeatedly to reduce the scale of the RFS or to repeal it altogether. The industry says the gasoline supply is saturated at the traditional 10 percent blend of ethanol into gasoline. Ethanol makers say the answer is to sell higher blends of biofuels.