Congressional Ethanol Group Tweaks Proposal as E15 Impasse Drags

Article content(Bloomberg) — A council of US lawmakers has updated proposed biofuels guidelines in an effort to break an impasse that has deeply divided agriculture and oil groups.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentBoth industries have clashed over biofuel policies, seeking to broker a deal with lawmakers to allow higher-ethanol E15 gasoline to be sold year-round nationwide, which would boost profits for farmers. The deal has been held up as the refinery sector argues over who should qualify for exemptions from using biofuels, which are huge expenses for refiners.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentThe congressional council’s latest plan — in addition to allowing year-round nationwide sales of E15 — raises the amount of exemptions allowable on blending mandates, according to people with knowledge of the proposal. Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentUnder the current waiver program, each gallon of ethanol or biodiesel mixed into transportation fuels generates credits — so-called renewable identification numbers, or RINs — that oil refiners use to meet their federal blending obligations. Article contentThe tweaked plan would limit exemptions on obligations for small refineries to 550 million RINs per year, the people said. That’s 100 RINs per year higher than the original proposal, in a nod to small and mid-sized refiners who said the limit was too small.Article contentIt’s only the latest in these negotiations, which are being closely watched by the industries as well as by lawmakers from energy and agriculture states. The proposal is expected to be attached to must-pass legislation, though it’s unclear whether the draft will move forward as is. Mid-size and small refiners may still see the deal as not providing enough room for exemptions.Article contentArticle contentThe council has been recently formed. When a measure allowing year-round sales of E15 was killed last month, House Republican leaders struck an agreement with Midwestern GOP lawmakers to form the E-15 Rural Domestic Energy Council, with the goal of reaching a compromise between the agriculture industry and small, medium and large refineries.Article contentThe council has released a discussion draft and is having “productive meetings as they work towards a final product,” said Alexandra Hamel, a spokesperson for council co-chair Randy Feenstra.Article contentThe wrangling over the proposal comes as the industries have also been anxiously awaiting the Trump administration’s finalization of blending quotas. That has been delayed, leaving uncertainty over how companies will be impacted.Article contentTrending Garry Marr: For young Canadians who bought at peak of market, Home Buyers' Plan was invitation to disaster First-Time Homebuyers Cooler inflation gives Bank of Canada an opening to cut rates if economy falters, say economists Economy Posthaste: Canada's biggest city is losing momentum, and that's a problem for the whole country News Revenge of the junior miners: TSX Venture hot list reveals major rebound Mining Canada's defence industrial strategy is big on ambition, but not details, critics say Economy Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Garry Marr: For young Canadians who bought at peak of market, Home Buyers' Plan was invitation to disaster First-Time Homebuyers Cooler inflation gives Bank of Canada an opening to cut rates if economy falters, say economists Economy Posthaste: Canada's biggest city is losing momentum, and that's a problem for the whole country News Revenge of the junior miners: TSX Venture hot list reveals major rebound Mining Canada's defence industrial strategy is big on ambition, but not details, critics say Economy