USDA Secretary Sonny Perdue in Illinois Monday said that there are “no plans” to use the Commodity Credit Corporation (CCC) to make payments to refiners that are denied small refiner exemptions (SREs) under the Renewable Fuel Standard (RFS).
“We don't think that qualifies under Charter 5 of the Commodity Credit Corporation Act, and we've informed them of that,” Perdue remarked. “So we'll have to see what happens.”
Perdue said President Trump is trying to be fair to both sides on the issue of small refinery exemptions. “He thinks that denying those waivers and complying with the RINs (Renewable Identification Numbers), and that, has hurt some of the small, independents (refiners). That may be the case, but if they need to get that, then they need to find another way to do that.”
Meanwhile, Reuters reported, citing two sources, that the Trump administration has dropped a plan to use CCC authority to make payments to refiners denied SRE requests. The administration had been considering paying some $300 million to refiners and tap the CCC authority to do so. But after outcry from Midwest lawmakers and even from refiners, the administration has shelved the plan, according to the report.
Late Tuesday, the House of Representatives also passed a short-term funding bill for the federal government that would prevent CCC funds from being used for oil refiners.