The RFS mandates that refineries create a set number of renewable fuel gallons each year.
Fortunately, last month President Trump announced intent to level the foreign and domestic playing field and remove Wall Street’s stranglehold by attaching RINs credits to exported renewable fuel.
While one would think supporters of the RFS would welcome President Trump’s decision to help refineries without repealing the ethanol mandate, last week Sen. Chuck Grassley (R-IA) succeeded in getting the White House to delay implementation of this reform measure.
Sen. Grassley complains that “the Renewable Fuel Standard is to promote domestic production, not to subsidize exports of ethanol.” But President Trump’s proposal doesn’t subsidize anything.
The RFS’s requirement that refiners mix a given percentage of ethanol into fuel each year creates unchecked demand for a product that is said to affect consumers by harming the environment and reducing fuel mileage in vehicles.