House Majority Leader Eric Cantor (R-VA) may attach legislation to reform the ethanol mandate to a debt ceiling package, according to a report from the Oil Price Information Service (OPIS). Cantor’s comments on the subject were made during recent comments with top oil industry executives from such organizations as Valero, Phillips 66, Chevron, and ExxonMobil.
“The Majority Leader listed a number of options to fix this issue of the Renewable Fuel Standard…then maybe we could try attaching it to a must-pass bill like the debt ceiling,” Cantor spokeswoman Megan Whittemore told OPIS. She did not say which other options were being considered.
Legislation to reduce or repeal the federal Renewable Fuel Standard (RFS) has already been introduced in the House, and the Energy and Commerce Committee is working on a bipartisan compromise to fix the controversial program, OPIS said. “A handful of House Energy and Commerce Committee members have been working on possible RFS compromise options.” Once Congress returns early next month, those lawmakers will “put together a policy framework of options to fellow energy committee members.” The options will likely run the gambit from full repeal to compromise reductions, OPIS said.
Refiners and the oil industry continue to advocate for a complete repeal of the RFS. And, this year, refiners began to hit the “blend wall,” which is the point at which refiners are reluctant to blend more ethanol into the fuel supply for safety reasons. This sent the prices for renewable fuel credits skyrocketing and led critics to blame the RFS for raising food and fuel prices.
