Iowa Governor Kim Reynolds said President Donald Trump and the head of the US Environmental Protection Agency both promised to protect the US biofuel mandate in calls to her Wednesday, despite recent signs the administration may want to weaken the law.
"Both of them personally affirmed to me their continued commitment to the Renewable Fuel Standard," Reynolds said in a press conference after calls with the White House and EPA Administrator Scott Pruitt.
Markets for Renewable Identification Numbers, or RINs, did not react sharply to the news.
White House spokeswoman Sarah Sanders said Trump "didn't make any assurances" on the RFS during the call with Reynolds.
"It was discussed and they're going to continue to look at that process," she said. "But no definitive decision was made on RFS."
Reynolds said neither Trump nor Pruitt promised not to make any cuts to RFS volumes, but they listened to her concerns about needing to "bring certainty and stability back" to the biofuels market.
"When we're disrupting it like we are now, that impacts investment," the governor said.
Reynolds said Pruitt reached out to her after pushback from the biofuels industry about EPA notices contemplating cuts and significant policy changes.
"They are feeling the pressure," she said. "That's why we need to keep it up. We can't let down."
Monte Shaw, executive director of the Iowa Renewable Fuels Association, told the same briefing that some in the industry are feeling "threatened" and "betrayed" by the administration despite Trump's campaign promises to support farm states.
"It kinda felt like the EPA was saying we're going to put a giant sign across rural America that says closed for business," he said.
Shaw said Trump has to decide if he will fulfill the campaign promises on biofuels.
"He can take action to put the EPA back on track with his view of renewable fuels," he said. "He's always been very consistent that he wants renewable fuels to be part of his 'America first' energy plan. Or if he sat back, it would essentially allow EPA to systematically dismantle the RFS."
Shaw said the second path would lead to a "breach of trust that I don't think would be easily repaired."
Refiners have been pushing hard for RFS changes, including moving the point of obligation to the wholesale rack, allowing exported fuel to qualify for RINs, and lowering the advanced biofuel mandate.
