Campaign urges administration to follow through on RFS review

A coalition of independent refiners, retailers, and labor unions called on the Trump administration to move ahead on a previously announced review of biofuel quotas under the Renewable Fuel Standard (RFS) despite opposition from renewable fuels organizations and two US senators from Great Plains states.

The Fueling American Jobs Coalition (FAJC) launched a week-long television advertising campaign on Oct. 30 that criticizes US President Donald Trump and his administration for allegedly caving in to pressure from Sens. Jodi Ernst (R-Iowa) and Heidi Heitkamp (D-ND) as well as biofuel groups.

"The need for significant reform has only grown over the last year as the cost of purchasing Renewable Identification Numbers (RIN) to comply with the RFS has skyrocketed, threatening some refiners' survival," FAJC said.

"The noble goal of the RFS is not without merit, but the flawed manner in which it is administered unfairly picks winners and losers in the gasoline retail industry and oil refining industries," it said.

The group's effort came days after nine other senators warned Trump in an Oct. 25 letter that "if your administration does not make adjustments or reforms related to the RFS, it will result in a loss of jobs around the country, particularly in our states."

The letter continued, "For example, a recent study found that if US independent refiners go out of business, an estimated 75,000-100,000 American jobs are potentially at risk." It was signed by Sens. Ted Cruz and John Cornyn (R-Tex.), John A. Barrasso and Michael B. Enzi (R-Wyo.), Patrick J. Toomey (R-Pa.), Jeff Flake (R-Ariz.), and three others.

American Fuel & Petrochemicals Manufacturers Pres. Chet Thompson applauded the letter. "The adverse impacts of these mandates on American families and workers have been clear for too long. We welcome an open and constructive dialogue about the best way to promote competition among fuels for the betterment of all Americans," he said.

Pennsylvania Gov. Tom Wolf (D) sent a request to Trump on Oct. 20 to ask US Environmental Protection Agency Administrator E. Scott Pruitt to waive obligations under the RFS for Philadelphia-area refiners, which have had to buy RINs at significantly higher prices to meet their renewable fuel obligations (OGJ Online, Oct. 24, 2017).

Heitkamp said on Oct. 18 that EPA reportedly was backing off plans to revise biofuel quotas under the RFS after she and other Senate members raised concerns about potential impacts on farmers and biofuel producers.

Ernst raised questions about possible biofuel quota changes on Oct. 17 in a meeting with Pruitt. "Our meeting today was another clear demonstration that biofuel-producing states will never stop fighting to protect the RFS," she said.