Recent negotiations between multi-national oil conglomerates and biofuel companies ignore important stakeholders
Key Takeaways:
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America’s small and midsize refiners will face dire consequences if the EPA mimics Biden-era policies and sets unrealistic renewable fuel mandates under the Renewable Fuel Standard (RFS).
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Now, a coalition of small refiners is asking President Trump to protect consumers and reject higher mandates that would harm small refineries, compromising the Trump administration’s promise and efforts to “Power the Great American Comeback.”
Deep Dive:
A coalition of small refiners is asking President Trump to reject higher renewable fuel mandates and do no harm to America’s refining industry and consumers. Their new call comes as multinational oil conglomerates – who are also the world’s largest biofuel producers – team up with the ethanol lobby to push for higher volume obligations under the Renewable Fuel Standard (RFS).
Earlier this month, the coalition of small refiners sent a new letter to President Trump asking he send oil and biofuel producers back to the drawing board to resolve the longstanding contention with America’s costly and overly burdensome biofuel mandates.
Recent proposals and an all-out lobbying push urging EPA to increase RFS mandates are sure to spike the price of Renewable Identification Numbers (RINs), the compliance credits refiners must purchase to prove compliance under the law.
“The mere mention of increased biofuels mandates caused RIN prices to soar and, according to EPA, at least some portion of those increased RIN costs will be passed on to consumers,” the coalition wrote.
Small and independent refiners have long struggled to maintain financial stability and protect jobs amid volatile RIN prices. But now, the prospect of higher mandates endangers the long-term viability of small refinery operations, undermining President Trump’s vision to restore America's energy and the EPA’s own “Powering the Great American Comeback” initiative.
“Your Executive Order directs EPA and other federal agencies to make policy recommendations to enhance the competitiveness of the American refining industry, not shut it down like the Biden EPA attempted to do,” the coalition continued. “We would welcome a seat at the table at the next meeting to ensure that all interested parties’ interests are considered. It is possible to adopt a biofuels policy that benefits all parties, including consumers.”
Fortunately, as the small refiners wrote, the potential harm is “entirely avoidable.” EPA has the authority to enact commonsense RIN reforms that will reduce the costly, confusing, and overly burdensome RFS costs for America’s refiners.
President Trump has an opportunity to ensure the nation’s renewable fuel mandates do not come at the expense of thousands of high-quality energy jobs and higher consumer costs. It’s time to give American refinery workers a seat at the table to help seize that opportunity.
