Ethanol Blog

LINCOLN, Neb. (DTN) -- A group of small-refinery companies asked President Donald Trump for a "seat at the table" when it comes to setting the next round of Renewable Fuel Standard volumes, in a letter to the White House on Friday.

Last week a group of biofuels, agriculture, fuel retailers and others met with officials at the U.S. Environmental Protection Agency to talk about the RFS. Biofuels groups including Clean Fuels Alliance America have asked the Trump administration to bump up volumes for biomass-based diesel.

Executives with eight small refineries told Trump their businesses will continue to suffer if RFS volumes are increased.

"If biofuels volumes are to be increased, the attendant harm to small refineries must be addressed," the executives said in the letter, "and we ask for a seat at the table to ensure that the voices of small refineries are heard."

The letter is signed by Brian Zolkos, chief financial officer for American Refining Group Inc.; Davide Coleman, CEO of Hunt Refining Company; Bruce Fleming, executive vice president of corporate development at Calumet Inc.; Jeff Hollis general counsel and secretary of Par Pacific Holdings Inc.; Kirk Latson, senior vice president of fuels marketing for Ergon Inc.; Rob Beadle, president of Placid Refining Company LLC; Cyrus Mojibi, president and CEO of San Joaquin Refining Company Inc.; and Ray Mettetal III, CEO of the San Antonio Refinery LLC.

"An increase in biofuels mandates under the RFS, as advocated by the multi-national oil and biofuels companies, will cause a dramatic increase in the price of RINs (renewable identification numbers)," the write in the letter, "which will cause irreparable harm to small refineries (who are captive buyers in the already over-priced market) and downstream consumers."

The executives said that because the "parties charged with giving you their recommendations are multi-national oil companies (that are also the world's largest biofuels producers), and independent biofuels producers, their recommendations overlook the harm to small refineries and consumers."

They told Trump to send those groups "back to the drawing board" to come up with biofuels policy that "does no harm."

The executives called on the Trump administration to provide small refineries "hardship relief" if the RFS volumes are increased.

"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 letter said.

Read more on DTN:

"Fuel Groups Jockey for RFS Position," https://www.dtnpf.com/…

Todd Neeley can be reached at todd.neeley@dtn.com

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