HOUSTON (Reuters) – The U.S. Renewable Fuel Standard (RFS) laws are not working and there is an “opportunity for a reset” of the standard in Washington, Marathon Petroleum Corp Chief Executive Gary Heminger said on Tuesday.
The RFS requires refineries to blend fuels with ethanol to reduce pollution, or pay for credits to subsidize those that do that blending.
Heminger said that the standard has caused very volatile prices of those credits, and that it needs reform.
The Trump Administration has attempted to reform the standard, but has maintained much of the existing framework of the law due to support from corn producers in Iowa and other farming states.
Reporting By David Gaffen; Editing by Marguerita Choy