The Hancock-Henderson Quill, Inc.

Ethanol Group Applauds White House for Denouncing RFS Rumors of Change

by Dessa Rodeffer, Quill Publisher/Owner

After years of working together for strong unified goals in the biofuels industry to produce independence from foreign oil, clean air, and support for the American farmers, a civil war broke out in the biofuel industry after the head of the Renewable Fuels Association (RFA) made a “backroom deal” with a 81 year old multi-billionaire refiner Carl Icahn.
Icahn of New York, a notorious coporate raider and an unpaid adviser to President Trump on regulatory issues, met with Bob Dinneen President of RFA to move the Point Of Obligation (POO) from refiners. 
The rumor led to a surge of more than $100 million in the value of Icahn’s stake in refiner CVR Energy Inc.  
Dinneen said, when he was asked tough questions on Agri-Talk last Thursday, that he still firmly supports not changing the RFS and POO, but said the train is pulling out and he was not "going to let it happen without getting something for it, and he is working out a deal. The double-talk added to the unrest in the biofuel industry.
Dinneen went on to say that he had the full backing of his RFS board to work on a deal with Icahn, however, various RFA board members have registered a strong “no” vote on working for a “deal” with Icahn.
Other big stake-holders were upset as well that they were not consulted by the RFA seeking input on a possible “deal” in changing the POO.  
Fuels America Coalition announced last Tuesday that they have severed all ties with RFA over Dinneen’s upsetting “backroom deal”. They include a long list of members.

Fuels America Coalition:            
Archer Daniels Midland Company
Growth Energy
Iowa Renewable Fuels Association
National Corn Growers Association
National Farmers Union
National Sorghum Producers
National Association of Wheat Growers
Biotechnology Innovation Organization
Clean Fuels Development Coalition
DSM Company
Energy Future Coalition
Platinum Ethanol
Abengoa Bioenergy 
Advanced Biofuels Business Council, and 
Advanced Biofuels Business Council
American Coalition for Ethanol 
American Security Project
American Council on Renewable Energy
America’s Energy Future
Association of Equipment Manufacturers
Growth Energy, who represents the producers and supporters of ethanol, came out last Tuesday with a press release thanking the White House for putting a stop to the circulating rumors that an alleged “deal” had been made to change the Renewable Fuel Standard (RFS) Point Of Obligation. 
“This afternoon the White House confirmed to several media outlets that no executive order is imminent. We look forward to a constructive, ongoing dialogue with this administration and lawmakers on Capitol Hill about policies that will continue to uphold what has been the nation’s most successful energy policy, reducing oil imports and cutting transportation-related emissions,” Growth Energy CEO Emily Skor said.
Skor, who has voiced her strong feelings about the misrepresentation Dinneen has given the industry and the misrepresentation of their strong support of the Renewable Fuels Standard (RFS) and Point of Obligation (POO), explains that “Under the RFS, the point of obligation – which obligates oil refiners to blend renewable fuel into our transportation fuel supply – is working as intended and is making sure that consumers have a choice of fuel at the gas pump. 
“President Trump has voiced a strong commitment to the RFS and continued progress for homegrown fuels, and we are heartened by the White House’s quick efforts to silence these rumors. 
“We look forward to a constructive dialogue with the administration on biofuel policy.”
Meanwhile, Dinneen at the RFA is another force to be reckoned with as he continues to justify the move that is causing much turmoil throughout the industry.
Icahn, “a renowned corporate raider, controls one of the largest independent U.S. refiners and stands to benefit in the millions of dollars by the move as to how the industry is regulated, moving the POO and burden of blending from the refinery to fuel blenders in the marketplace.
The news of Dinneen’s change came just after the RFA had filed comments with the EPA asking the agency to block Icahn’s demands. But Dinneen said he changed his mind after word came from the White House with “no uncertainty” he said that Icahn’s request would be granted. 
It gives a quasi effect and unrest within the gasoline and corn industry. Ethanol leaders said Dinneen was “snookered”. Many are questioning if Dinneen should remain head of the RFA.
Growth Energy CEO Emily Skor said, “These negotiations centered on Valero’s petition to the EPA aimed at permanently destabilizing the Renewable Fuel Standard (RFS) by shifting the point of obligation.” 
“You’ve got one individual acting as if he has the ability to speak on behalf of ethanol; he doesn’t. 
"Growth Energy represents the world’s largest biofuel producers as well as co-op owned plants; I assure you this is no deal for anyone but Carl Icahn. More than anything, this is an Icahn bailout. 
"If we had been approached with this deal we would have flat out rejected it. This would gut the RFS and violate the president’s commitment to the policy. And in the end, those who lose the most will be everyday Americans.”
The agriculture world, including farmers, retailers, and rural communities stand to financially lose disproportionately if Mr. Dinneen, his new found ally Mr. Icahn, and certain specific refiners have their way in ultimately destroying the RFS by changing the Point of Obligation (POO).
An overwhelming number voicing their opposition to moving the Point Of Obligation along with the Fuels America Coalition (listed earlier in this article). They include the following:

Absolute Energy
Advanced Biofuels Association 
Advanced Biofuels Business Council 
American Biogas Council 
American Corn Growers Association 
Biotechnology Innovation Organization (BIO) 
Big River Resources LLC
Big River Resources COOP
Big River Resources UInited Energy
Green Plains 
Growth Energy 
Iowa Biodiesel Board 
Illinois Corn Growers
Illinois Renewable Fuels Association
Iowa Corn Growers Association 
Iowa Renewable Fuels Association 
Quad County Corn Processors
Wisconsin Renewable Fuels
Ace Energy Corporation 
Guttman Energy 
J.D. Streett 
Kinder Morgan Energy Partners 
Ports Petroleum Company Inc. 
Pro Petroleum 
Society of Independent Gasoline 
Marketers of America (SIGMA) 

American Petroleum Institute 
Marathon Petroleum 
Boyett Petroleum 
California Independent Oil 
Marketers Association 
Casey’s General Stores, Inc. 
Chronister Oil 
Circle K 
Cumberland Farms 
Double Quick, Inc. 
GATE Petroleum Company 
Giant Eagle 
Gresham Petroleum 
Kum & Go 
Kwik Trip, Inc.
Midwest Petroleum 
Murphy USA 
National Association of 
Convenience Stores (NACS) 
National Association of 
Truck Stop Operators (NATSO) 
Ohio Petroleum Marketers & 
Convenience Store Association 
Pennsylvania Food Merchants Association 
Petroleum Marketers & 
Convenience  Store Association of Kansas 
Petroleum Marketers & 
Convenience Stores of Iowa 
Pilot Travel Centers LLC 
QuikTrip Corporation 
RaceTrac Petroleum, Inc. 
SEI (7-Eleven) 
Thorntons Inc. 
Truckstops of Iowa 
American Highway Users Alliance 
American Short Line & Regional 
Railroad Association 
American Trucking Association 
Association of American Railroads 
Owner-Operator Independent 
Drivers Association 


American Fuel & Petrochemical Manufacturers (AFPM) 
HollyFrontier Corporation 
PBF Energy 
Monroe Energy 
Philadelphia Energy Solutions 
Icahn Enterprises (CVR Refining)