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Ethanol groups up in arms over supposed Cruz RIN cap proposal

Rumors of a proposed limit on Renewable Identification Number—or RIN—credits have ethanol groups up in arms.

American Coalition for Ethanol (ACE) CEO Brian Jennings tells Brownfield there are unconfirmed reports Texas Senator Ted Cruz has asked President Trump to cap RIN credits at 10 cents apiece.

“And that would be a serious problem.  Frankly, a solution in search of a problem.  Probably unlawful.  And I don’t think that idea will fly.”

Jennings describes RINs as a proof-of-purchase coupon that rewards refiners for blending renewable fuels.

He says capping the credit completely erases that incentive and limits savings at the pump.

“But this isn’t about RIN prices, this is about market share.  Senator Cruz is up for reelection in 2018 (and) is desperate to show something for it.  This is a way for Senator Cruz to curry favor with refiners who don’t want to see ethanol’s market share grow.”

In response to Cruz’s rumored RIN cap proposal, Growth Energy CEO Emily Skor accused the senator of trying to undermine the RFS.

And Advanced Biofuels Business Council director Brooke Coleman says Ted Cruz and his backers don’t seem to be taking the White House seriously.