Refinery-state Democrats plan bill to rein in biofuel blending compliance costs

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Congressional lawmakers are drawing up legislation to cut down the near-record compliance costs associated with the Renewable Fuel Standard, which has pitted corn staters and some in the oil industry against each other for more than a decade.

The bicameral effort would seek to control the volatile prices of Renewable Identification Numbers, according to an announcement Friday from the office of Sen. Bob Casey . Refiners must blend a specified amount of biofuels, to which RINs are attached, into their fuel products in a given year. They may also purchase RINs as credits in lieu of blending the volumes, a common strategy especially among small refiners.

Casey, along with Sen. Chris Coons , Rep. Mary Gay Scanlon , Rep. Brendan Boyle , and Rep. Donald Norcross are collaborating on the bill. Merchant refineries are distinguished from those operated by large, vertically integrated firms such as ExxonMobil and Chevron.

 

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