Reports that the White House might allow an increase in the blending of ethanol into gasoline caused May corn futures to jump by nearly 6%, to $3.86 1/4 a bushel at one point and finally settling up 1.3% to $3.73 a bushel.
Meanwhile, Fuels America said it has severed ties with the Renewable Fuels Assn. over Carl Icahn’s attempts to “permanently destabilize the Renewable Fuels Standard.” Following is a press release stating Fuels America’s position on the situation.
America’s Biofuel Advocates Reject Effort to Derail Renewable Fuel Standard
WASHINGTON, DC — The nation’s leading coalition of biofuel advocates, unified under the Fuels America coalition, today have resolved to reject a play by Carl Icahn, owner of CVR Refining, to permanently destabilize the Renewable Fuel Standard (RFS) and has severed ties with the Renewable Fuels Assn. (RFA). The Fuels America coalition has issued the following statement:
“Fuels America represents a diverse coalition, from farmers to scientists, working to protect America’s Renewable Fuel Standard and promote the adoption of homegrown biofuels that are good for the U.S. economy, for our nation’s energy security, and for the environment. In keeping with our mission, we adamantly oppose any effort to derail the RFS by shifting the point of obligation and exempting certain refiners and fuel importers from their responsibility to deliver cleaner, more affordable biofuel options to consumers.
“Carl Icahn, in his conflicted role as owner of CVR Refining and special White House advisor, has sought to mislead biofuel advocates into accepting rewrites to the RFS in exchange for changes to outdated EPA regulations that limit summertime sales of ethanol. Yet, Mr. Icahn has no authority to dictate EPA policy, and a waiver to Reid Vapor Pressure (RVP) limits would be meaningless if retailers lost the incentive to sell higher biofuel blends, as Icahn proposes. His purported deal offers nothing for those who care about increasing the role of homegrown biofuel in meeting America’s energy needs, and it is a disservice to hundreds of thousands of farmers and workers in rural America that depend on a strong market for U.S. biofuels.
“Despite our opposition, the Renewable Fuels Association (RFA) has elected to lend its support to Mr. Icahn’s efforts. Accordingly, RFA’s position is no longer aligned with America’s biofuel industry and the Fuels America coalition has resolved to sever ties with the group.”
About Fuels America
Fuels America is a coalition of organizations committed to protecting America’s Renewable Fuel Standard and promoting the benefits of all types of renewable fuel already growing in America. Fuels America is founded on a simple core principle: Renewable fuel is good for the U.S. economy, for our nation’s energy security, and for the environment. For more information, please visit us at www.fuelsamerica.org.