Now what Trump is doing will wash some of the artificial gubmint costs out of refining if properly implemented:
https://www.nytimes.com/2016/08/23/business/energy-environment/high-price-ethanol-credits-add-to-refiners-woes.htmlThese credits originally sold for a few cents a gallon under the system supervised by the E.P.A. But as an unregulated trading market has emerged, the price has swung wildly for the credits, which are known as RINs, for Renewable Identification Numbers.
The ethanol RIN price approached $1.50 a gallon in the 2013 bubble before falling below 25 cents. And it recently spiked at nearly $1 before slipping back somewhat.
Ethanol is broadly unpopular in the oil industry, largely because biofuels compete with petroleum products for market share. And many say the policy to promote ethanol is antiquated after a six-year drilling frenzy in the United States that has resulted in reduced imports and cheap gasoline.
But the industry is divided on the question of who should be responsible for RIN purchases — those who refine gasoline, as is now the case, or those who blend gasoline with ethanol or other biofuels.
https://www.cnbc.com/2018/10/08/trump-will-order-changes-to-biofuel-rules-in-bid-to-end-feud-between-farm-states-and-oil-refiners.htmlThe Trump administration will seek to reform two parts of the nation's policy to promote biofuels, marking its latest attempt to reach a mutually beneficial outcome for two of the president's key constituencies: the fossil fuel industry and farm states.
President Donald Trump on Tuesday ordered acting EPA Administrator Andrew Wheeler to take measures that would lift barriers to the summertime sale of E15, a type of gasoline-biofuel blend, according to a senior White House official. The change is calculated to shore up demand for biofuels such as corn-based ethanol and boost the fortunes of farmers.
Regulations effectively restrict the sale of E15 from the beginning of June through the middle of September at gas stations throughout much of the country.
At the same time, the Trump administration will aim to limit speculation in the market for biofuel credits, the official told reporters Monday. The nation's refiners have long complained that the obscure market is flawed, resulting in price spikes that drive up the cost of complying with federal rules and putting financial pressure on small refineries.
Tackling trade in biofuel credits
The administration will also start the federal rule-making process to address the energy industry's concerns about the market for biofuel credits, the official said.
Refiners generate the credits — known as Renewable Identification Numbers, or RINs — when they blend biofuels into gasoline. Refiners that aren't able to blend biofuels must purchase RINs from their competitors.
New regulations under consideration include limiting trading in the credits to refiners and fuel importers, the official said. That would cut out traders who are not linked to refining businesses but are allowed to trade in RINs. Refiners often blame these traders for wild price swings that can raise the cost of compliance for small refineries.
RINs prices were particularly volatile last year. Analysts say Trump's decision to appoint the billionaire investor Carl Icahn as a regulatory advisor fed that volatility. Icahn holds a majority stake in refinery operator CVR Energy and sought changes to biofuels rules that would benefit refiners, but the administration did not adopt his ideas.
Sens. Grassley and Ernst rejected Cruz's proposal to cap RINs prices following a White House meeting in February.
