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
DuPont
Enogen
Growth Energy
Iowa Renewable Fuels Association
Monsanto
National Corn Growers Association
National Farmers Union
National Sorghum Producers
National Association of Wheat Growers
POET
Biotechnology Innovation Organization
Clean Fuels Development Coalition
DSM Company
Energy Future Coalition
NexSteppe
Novozymes
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:
OPPOSITION TO MOVING
THE POINT OF OBLIGATION:
PRODUCERS
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
POET
Quad County Corn Processors
Wisconsin Renewable Fuels
DISTRIBUTORS
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)
OIL
American Petroleum Institute
Marathon Petroleum
Tesoro
RETAILERS
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)
Sheetz
Thorntons Inc.
Truckstops of Iowa
Wawa
CONSUMERS
American Highway Users Alliance
American Short Line & Regional
Railroad Association
American Trucking Association
Association of American Railroads
Owner-Operator Independent
Drivers Association
UPS
SUPPORTING TO MOVING
THE POINT OF OBLIGATION:
MERCHANT REFINERS
Valero
American Fuel & Petrochemical Manufacturers (AFPM)
HollyFrontier Corporation
PBF Energy
Monroe Energy
Philadelphia Energy Solutions
Icahn Enterprises (CVR Refining)