Ethanol Blog

EPA Reportedly to Reject Petition to Change Ethanol Point of Obligation

Jerry Hagstrom
By  Jerry Hagstrom , DTN Political Correspondent

President Donald Trump's administration plans to reject a proposal that would change the point of obligation for complying with the Renewable Fuel Standard away from refiners, Politico reported on Thursday.

Citing an unnamed administration official as a source, Politico said Trump has rejected a proposal by billionaire Carl Icahn, a key Trump supporter, and independent companies to shift the compliance to other levels in the distribution of biofuels. Biofuels producers and major oil companies opposed the change.

EPA plans to formally announce the decision within the next two weeks and "President Trump supports the EPA's decision," the official said, according to the Politico report.

"We are encouraged by reports that EPA is likely to deny petitions to move the point of obligation," Bob Dinneen, president and chief executive officer of the Renewable Fuels Association said to DTN in a statement.

"Consistent with our previously stated position on the issue, RFA supports the current point of obligation. We believe the quickest path to the lower RIN prices sought by obligated parties is regulatory or legislative action to establish RVP (Reid Vapor Pressure) parity for E15."

President Barack Obama's administration announced on Nov. 10, 2016, that it planned to reject a petition to change the point of obligation,….

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