As last week closed, it appeared that issues relative to US biofuel policy had been settled and an announcement from the Trump administration was expected to come. That assessment came from sources in the wake of the meeting September 19 between President Donald Trump and senators representing refining interests.
However, as this week opens, sources now indicate that Trump is seeking more perspective and options in the matter, reportedly bringing National Economic Council chief Larry Kudlow into the mix.
Expectations were that the Trump administration was poised to announce that they would use a three-year average to reallocate Renewable Fuel Standard (RFS) obligations that were covered by small refinery exemptions (SREs), starting with the 2020 compliance year. Coming out of the Thursday meeting, it appeared that refiner interests were likely to get a cap on prices for Renewable Identification Numbers (RINs), the credits refiners can buy to show compliance with the RFS.
However, now that the matter has apparently been thrown open once again, the expectation for an announcement has turned to uncertain relative to the timing of any announcement from the Trump White House.
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