Three sources familiar with the discussion told Reuters that the Trump Administration is considering limits on trading biofuels credits. The goal would be to discourage speculation and reduce costs for oil refiners to comply with U.S. biofuels policy. The sources also told Reuters that an announcement could be made in the weeks ahead.
The move would be part of a deal to help U.S. corn farmers and biofuels producers by lifting a ban on the summer sales of higher ethanol blends in the nation’s gasoline. President Trump has repeatedly said he supports the lifting the ban on the year-round sale of E15 to help expand the market for corn. However, lifting the ban could also draw legal challenges from the oil industry, which worries that such a move could eat into their market share.
The White House is considering capping the number of credits a dealer can hold at 120 percent of their company’s annual compliance obligation. It’s also considering restricting certain parties from holding the credits for more than 30 days.
Source: National Association of Farm Broadcasting News Service.