White House plans RFS meeting: Grassley

The White House plans to host a meeting on federal fuel blending mandates early next week, according to a key agriculture state senator.

Senator Chuck Grassley (R-Iowa) confirmed through a spokesman an invitation to discuss the Renewable Fuel Standard (RFS) with the White House and other senators at the session. The White House did not respond to a request for comment.

It would be at least the third White House meeting on the politically sensitive fuel-blending mandates loathed by refiners and defended by farmers and biofuel producers.

Previous meetings have included Environmental Protection Agency administrator Scott Pruitt, agriculture secretary Sonny Perdue, and US senators Ted Cruz (R-Texas), Pat Toomey (R-Pennsylvania) and Joni Ernst (R-Iowa).

Each meeting has roiled prices for credits needed to prove compliance with the law.

Ethanol RINs fell by 1¢/RIN to 31¢/RIN today, it's lowest level since mid-September 2015 and 25pc lower than the average price this week last year.

RFS requires refiners, importers and other companies to each year ensure minimum volumes of renewables blend with the gasoline and diesel they add to the US transportation fuel supply. Companies must acquire renewable identification numbers (RINs) representing that blending to prove compliance, either through wholesale operations or by purchasing from others.

US refiners want to repeal the mandate. Agriculture and biofuels groups support the law as ensuring access for their fuels to the US market and supporting demand for crops.