Ted Cruz's first attempts to adjust ethanol mandate not well received

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Sen. Ted Cruz is considering a cap on the price of ethanol credits as part of a deal he wants to work out with renewable fuel and corn ethanol proponents on Capitol Hill.

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Reuters reported Friday that Cruz has a proposal for the Environmental Protection Agency to sell "fixed price waiver credits" at 10 cents per credit, which would be used by oil refiners to satisfy all requirements to blend biofuels under the EPA's Renewable Fuel Standard and ethanol mandate.

The RFS requires refiners to blend ethanol and other biofuels in the nation's diesel and gasoline supply. If they cannot blend the fuel, they can buy Renewable Identification Number credits, or RINs, to comply with the standard.

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"The integrity of the RFS is Sen. Grassley’s priority and there was an understanding expressed broadly in the meeting that any outcome can’t undermine the integrity of the RFS," the spokesman added.

The biofuel industry expressed its opposition to Cruz's proposed cap on RIN prices Friday, saying the best way to lower biofuel credits is to blend more ethanol into the fuel supply.

The ethanol industry and dozens of other biofuel groups sent a letter to President Trump on Friday explaining that the oil refiners can bring down RIN costs by simply blending higher amounts of the fuel, which is how the RFS is designed.

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"The ready solution to Senator Cruz’s stated concerns is to blend more ethanol and send clear regulatory signals about the future growth of biofuels under the RFS," said Emily Skor, president of the pro-ethanol group Growth Energy. "RVP relief would immediately add another three months’ worth of E15 sales to the market. That’s how RFS is meant to work.”

Others lashed out at Cruz on Friday for not taking seriously Trump's stated support for the RFS and ethanol.

“Ted Cruz and his backers don’t seem to be taking the White House seriously," said Brooke Coleman, executive director of the Advanced Biofuels Business Council. "President Trump vowed to protect rural America."

"No one is going to raise costs on consumers, jeopardize our energy security, and threaten jobs across the heartland based on misinformation about how the RFS works," Coleman said. "Instead of refinery handouts, we should cut the red tape and let customers decide whether to buy E15 all year long.”

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