As per U.S. Renewable Fuel Standard, oil refiners have to blend biofuels with their product. According to refiners, this becomes too pricey and as a result, they demand waivers from the government which may be granted if they prove that this negatively affects their business.
Corn-based ethanol producers often face difficulties due to these waivers.
According to a report by Reuters, the Trump administration plans to deny all pending waivers. This decision has been welcomed by the Corn lobby.
One must remember that both the Refiners and Ethanol producers are important constituencies for the Republican President and therefore this decision, if and when made, could prove critical in the 2020 Presidential elections.
(Source – Reuters)
