Sen. Ted Cruz is considering a cap on the price of ethanol credits as part of a deal he wants to work out with renewable fuel and corn ethanol proponents on Capitol Hill.
But the idea has not made its way to the office of the Senate’s chief ethanol backer, Sen. Chuck Grassley, R-Iowa, who will have a large say on how far the proposal will go.
“We haven’t received any proposal from Sen. Cruz,” Grassley spokesman Michael Zona said Friday.
Reuters reported Friday that Cruz has a proposal for the Environmental Protection Agency to sell “fixed price waiver credits” at 10 cents per credit, which would be used by oil refiners to satisfy all requirements to blend biofuels under the EPA’s Renewable Fuel Standard and ethanol mandate.
The RFS requires refiners to blend ethanol and other biofuels in the nation’s diesel and gasoline supply. If they cannot blend the fuel, they can buy Renewable Identification Number credits, or RINs, to comply with the standard.
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