“No way” Trump can please both sides in RFS debate

An ag economics professor says President Trump is caught between two warring camps when it comes to the Renewable Fuels Standard.

Scott Irwin, with the University of Illinois says it’s apparent, after the industry reacted to the EPA’s latest round of refinery waivers, Trump wants to make it up to farmers somehow, “I don’t believe that there is a way to make everyone in the debate happy.”

Irwin proposes removing the small refinery issue by giving a blanket waiver to all small refiners when the annual rule making takes place, “And that the removal of the obligated gallons from those small refineries be reflected in the formulas so that there’s none of this retroactive cutting through the mandates through the SREs that’s going on now.”

Irwin admits his three-year proposal would make farmers and small refiners happy but large refiners very unhappy. But, says that’s probably the best that could be done.

Irwin says Trump’s EPA “clearly has been siding more with the crude oil/refining side than the ag and biofuels side.”

Interview with Scott Irwin
  • I support the idea of giving all Small Refiners an automatic RFS Waiver and Reallocating ALL Waivered Obligations back to the Larger Pool of Obligated Parties, with each year’s RFS Obligations. This seems to be a fair way to proceed because the EPA has turned the Refinery Waivers into a back-door tool to reduce Biofuel Blending.

    The Secretive Process of deciding which “Small Refiners” qualify for a waiver is a farce. EPA does whatever they want to do here, and then lie about it, saying their hands are tied.

    I am convinced the true purpose of EPA’s Small Refinery Waivers is to limit RIN Prices and Limit Biofuel Blending to be less than 10% of the fuel market, regardless of what the Yearly RFS Blending Obligations Call For. This is what the Oil Industry wants.

    Think about it, under President Obama, EPA granted an average of 6 to 7, “Small Refinery Waivers” per year when RIN’s were between 50 cents to 80 cents pre gallon. Obama’s EPA also reassigned the waivered gallons back to the Larger Refinery Industry to keep the RFS whole. Something Trump’s EPA just can’t seem to figure out how to do!

    Now after all of Trumps Business Tax Breaks, Relaxed Environmental Rules for Refiners and RIN Prices in the 10 cents to 20 cent range, Trump has averaged 28 Refinery Waivers per year for “Disadvantaged Small Refiners.” So, WHY? Refiners under Trump have never had it so good, yet we seem to need more Small Refinery Waivers than ever.

    President Trump just approved 31 more Small Refinery Waivers for the 2018 Compliance year with the Ethanol Industry and Farmers Gasping for Air.

    Should we be surprised that we have 20 ethanol plants shut down and many more running at reduced rates?

    President Trump, if you really support Biofuels and Farmers, Reallocate the 4.5 BILLION GALLONS of Blending Obligations YOU have Waivered over the last three years, and DO IT NOW!

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