Icahn Policy Involvement Probed

Senators Ask EPA for Information on Icahn Involvement in Setting US Policy

Todd Neeley
By  Todd Neeley , DTN Staff Reporter
Connect with Todd:
Five United States senators have asked for documents from the U.S. Environmental Protection Agency related to presidential advisor Carl Icahn's role in the administration. (DTN file photo)

OMAHA (DTN) -- Five Democratic senators are pushing for more information regarding billionaire energy investor Carl Icahn's involvement in setting policy in the new administration. The senators sent a request for documents from U.S. Environmental Protection Agency Administrator Scott Pruitt on Tuesday.

President Donald Trump selected Icahn as a special adviser on regulatory reform issues on Dec. 21, 2016.

Icahn's involvement with the administration hit a boiling point earlier this year when Renewable Fuels Association President and Chief Executive Officer Bob Dinneen said the president was planning to issue an executive order changing the point of obligation in the Renewable Fuel Standard. The point of obligation determines which entities are responsible for meeting the biofuels mandates. The president never did sign such an executive order.

In Tuesday's letter from Sens. Sheldon Whitehouse, Debbie Stabenow, Jeffrey A. Merkley, Elizabeth Warren and Tammy Duckworth, the lawmakers asked for documents related to any communications between Icahn and any of his representatives from Icahn Enterprises or CVR Energy, Inc., and "any person" in EPA's office of the administrator, the office of policy or the office of air and radiation since the day after the presidential election.

The senators also ask for any reports, documents, analyses, briefing materials, information, talking points, summaries or "other data shared with or by Carl Icahn" or anyone connected with his business interests.

"The administration has never formally described the role Mr. Icahn plays, the extent of this portfolio, or whether he has recused himself from decisions (or divested himself from financial holdings) that would present conflicts of interest, or the appearance thereof," the letter said.

P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]

"Reports indicate that Mr. Icahn has not taken these steps."

In early May, a group of eight Democratic senators wrote to multiple federal agencies asking them to investigate whether energy companies owned by Icahn financially benefitted from his position as a special adviser.

In the letter to Pruitt this week, the senators said they are looking for information about Icahn's "role in development of environmental policy and regulations" at EPA.

The senators allege there may be a connection between Icahn's involvement with the administration and potential financial benefit for his companies as a result.

Icahn is the majority owner of petroleum refiner CVR Energy, a company the senators said is "heavily involved in the renewable fuel credits market." Icahn has been critical of the renewable identification numbers, or RIN, system used by obligated parties to comply with Renewable Fuel Standard obligations.

"First, reporting suggests Mr. Icahn has directly participated in negotiations over proposals to make regulatory changes to the RFS that would save CVR hundreds of millions of dollars," the senators said in the letter.

The letter said the RFA and Icahn presented a proposed executive order to the White House to make the change, a claim the RFA and the White House has denied.

"The day Mr. Icahn's proposal (which has yet to be formally signed by President Trump) was sent to the White House, CVR's stock value increased by 3.5%, representing a single-day, multi-million-dollar windfall for Mr. Icahn," the letter said.

"Second, Mr. Icahn appears to be profiting through speculation in the market for renewable fuel credits. After President Trump chose you to be EPA administrator on Mr. Icahn's advice, the price of the credits dropped by approximately 20%. Then after the Feb. 27, 2017, press reports about the proposed executive order, RIN market prices dropped again, by approximately a third, reaching a 17-month low that represented about a 70% decline from the November 2016 peak cost of the credits. While this was occurring, most refiners were accumulating credits to satisfy renewable fuel standards, but CVR was offloading credits in a bet that the price for RINs would continue to plummet and it could buy them at that later date at a discount.

"In light of the representation made by the Trump transition team that Mr. Icahn is not 'serving as a federal employee or a special government employee,' we see no reason why this information cannot be produced promptly and completely."

Read more about the RIN program in this three-part DTN series: http://bit.ly/…, http://bit.ly/…, http://bit.ly/…

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

Follow him on Twitter @toddneeleyDTN

(AG/ES)

P[L2] D[728x90] M[320x50] OOP[F] ADUNIT[] T[]
P[R1] D[300x250] M[300x250] OOP[F] ADUNIT[] T[]
P[R2] D[300x250] M[320x50] OOP[F] ADUNIT[] T[]
DIM[1x3] LBL[] SEL[] IDX[] TMPL[standalone] T[]
P[R3] D[300x250] M[0x0] OOP[F] ADUNIT[] T[]

Todd Neeley

Todd Neeley
Connect with Todd: