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Sen. Ted Cruz is pressuring Iowa Gov. Kim Reynolds to reach a deal between oil refiners and the ethanol industry over the Environmental Protection Agency's renewable fuel mandate.
Cruz, speaking on behalf of a group of eight GOP senators, wrote in a Tuesday letter to Reynolds that they do not wish to up-end the market for corn ethanol produced in her state, which is the nation's top producer of the fuel.
Cruz - Senators - Problem - Renewable - Fuel
Instead, Cruz argued that the senators' real problem with the Renewable Fuel Standard is refiners being required to buy expensive renewable identification number credits, or RINs, to meet the EPA's ever-increasing biofuel targets.
Cruz said the real beneficiaries of sustained high RIN prices are Wall Street traders and speculators who try to make money as refiners shed jobs to pay for the credits. The RFS requires refiners to blend ethanol and other biofuels in the nation's fuel supply.
Data - RIN - Prices - Corn - Prices
"Indeed, the data show that when RIN prices are highest, corn prices are often lowest," Cruz wrote. "Surely, we can agree that our nation's RFS policy should benefit corn farmers and hardworking refinery workers on Main Street, not fast-talking bankers on Wall Street."
Cruz is looking for leverage in talking to Reynolds.
He has a hold placed on one...
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