The Trump administration is expected on Friday to unveil a new plan to boost U.S. biofuels demand, four sources briefed on the matter told Reuters.
Although details of the plan are uncertain, Paul Gregory of Allendale, Inc. states that the plan could include details of a U.S. biofuels policy deal based on a three-year rolling average of total biofuels gallons exempted from the RFS mandate.
President Trump promised a “giant package” related to ethanol in August after the administration angered corn groups and farmers by exempting 31 oil refiners under the nation’s biofuels policy.
The Trump administration had already provided a boost to E15 earlier this year by lifting Obama-ers seasonal restrictions that had banned its sale during the summer months.
The new plan is not expected to include anything from the oil industry’s wish-list, however, like a cap on the price of biofuel blending credits, the sources told Reuters, meaning it could prove a bitter-pill for refiners.
Oil and corn have long clashed over America’s biofuels regulation, the Renewable Fuel Standard. The regulation states that a 15 billion gallon a year market for ethanol, but refining companies counter that it has cost them a fortune.