The Trump administration is considering spending at least $300 Million to aid refiners that are denied waivers to the US Renewable Fuel Standard laws for 2019, Reuters reported, citing two sources familiar with the matter. The biofuel regulation requires refiners to mix biofuels into their fuel blend or purchase credits from those that do. Refiners can apply for exemptions by proofing that complying to the rules caused financial loss.
The Trump administration increased the number of waivers granted to refiners by four-folds, drawing anger from biofuel producers and farmers. However, a recent court ruling makes some applying refiners considered ineligible. Hence, the government considers the proposed aid. The financial assistance can come from funds within the US Department of Agriculture, the sources said. However, it remained unclear when it would be distributed.
A spokesperson with the American Fuel and Petrochemical Manufacturers said the industry did not support the President’s move. It instead recommended the administration to make the RFS less expensive, so it did not threaten manufacturing jobs.
