Petroleum and biofuel groups in the USA have formed an alliance to address uncertainty surrounding the nation’s biofuels policy, energy news website OilPrice reported.
US President Donald Trump had asked oil and biofuels companies to negotiate a new biofuels policy to avoid political conflicts, with their agreement likely to be adopted by the administration, the 28 March report said.
The Renewable Fuel Standard (RFS), which mandates biofuel blending into petrol, was at the centre of the industry negotiations, with concerns about waivers and the impact of trade tensions on the sector, OilPrice wrote.
The White House directive had led to at least two bilateral meetings, including one held by the American Petroleum Institute (API) in the week before the report, a separate 27 March Energy News report quoted API vice president of downstream policy Will Hupman and three other sources as saying.
According to Hupman and other sources, representatives at that meeting discussed topics such as the future volume of biofuel blending mandates, exemptions for smaller refiners and biofuel tax policies.
Hupman said it was easier for the Trump administration to reach a conclusion if they heard from groups who had traditionally been on opposite sides.
In February, US oil and biofuel groups had formed an unlikely alliance to protest about uncertainty in the nation’s biofuels policy, OilPrice wrote.
With concerns increasing over how a trade war with Canada would impact the sector, the industry has become increasingly vocal about the need to establish rules for biofuel waivers and quotas under the current administration, according to the report.
“While our organisations have not always agreed on every detail, we have joined together in recognition of the critical role liquid fuels serve in the American economy, to advance liquid fuels, and ensure consumers have a choice of how they fuel their vehicles,” the groups said in a letter to new Environmental Protection Agency (EPA) administrator Lee Zeldin.
“We believe strong, steady volumes for conventional biofuel targets, biomass-based diesel and advanced fuels would more accurately reflect the availability and ongoing investments in feedstocks and production capacity.”
In response to industry unease, President Trump had asked oil and biofuels companies on 27 March to formulate a strategy “to avoid the … political clashes that marked his first term”, according to reporting by Reuters based on information from four sources familiar with the matter.
While the alliance could speed up the policy process by putting decision-making back in the hands of the industry, it would not be easy for oil and biofuel sectors to come to a quick consensus, OilPrice wrote.
