Biggest issue: how much and over what time period waived gallons would be reallocated
There are no final conclusions regarding which options will be agreed on relative to ongoing White House meetings with biofuel proponents and biofuel producers. However, several proposed options have surfaced today relative to boosting ethanol use to temper the 4.2 billion gallons of ethanol in waivers granted by the EPA.
Meanwhile, a meeting previously scheduled at the White House today with oil-state senators has apparently been canceled due to a scheduling conflict with Sen. Ted Cruz (R-Texas).
Oil-state lawmakers say reallocating biofuels blending requirements covered by waivers would “violate the law and harm certain obligated parties, nullifying any relief achieved by issuing the SREs [small refinery exemptions] in the first place.”
Some sources signal options under current review, subject to change, include reallocating gallons waived by August and any gallons exempted in the future, but that may come with a cap on RIN prices.
While the Trump administration initially did not appear willing to reallocate the entire 4.2 billion gallons exempted, late word according to some sources is that one option under discussion/White House review is to reallocate the 4.2 billion gallons over three years. It is unclear whether the biofuel industry and corn producer groups would approve that apparent possibility because they have been steadfast in seeking an immediate reallocation of the entire gallonage.
As we’ve seen, RFS decisions can change quickly.