Canary Blog President Trump: Don’t Reallocate Blending Obligations

Scottsdale, AZ, Thursday, June 21, 2018 Check out Dan K. Eberhart’s letter to President Trump. Dear President Trump, On behalf of the hundreds of American workers of Canary, LLC, I write to urge you to ensure that Administrator Pruitt and the EPA do not include a reallocation of blending obligations that were waived under the small refinery exemption program to other refiners. News reports have indicated that EPA is planning to doing just that as a part of their release of the 2019 Renewable Volume Obligations (RVO) under the Renewable Fuel Standard (RFS) as early as tomorrow. I am a strong supporter of your administration’s pro-growth policies and energy dominance agenda. A decision to reallocate the blending obligations, however, would be a dramatic departure from the promises you made during your campaign and mark a return to the days of market uncertainty and government picked winners and losers. Canary is one of the largest private oilfield service companies in the United States with operations in every major shale basin. We are not oil refiners with a personal stake in the outcome of this decision. We are, however, keen observers of the markets and we are concerned that hasty decision to placate corn farmers will result in increased costs for US refiners, harm workers and slow down economic growth. We are on the verge of seeing four percent annualized GDP – something your detractors said would never happen! We won’t get there if you allow your EPA Administrator to repeat the mistakes of the past by picking winners and losers via executive fiat. I strongly support your efforts to create American jobs. I have also expressed my opposition in the past to the tariffs and other protectionist policies that I believe will harm U.S. competitiveness. In retaliation for your foreign steel and aluminum tariffs – China has responded by retaliating against U.S. agricultural exports. It is no secret that the farm-belt is hurting because of these policies, but the EPA should not respond by making such a market-distorting decision to alleviate the political pressure. It will be viewed as a betrayal by many of the blue collar workers in dozens of states that worked hard to elect you. Let’s continue your plan for unleashing America’s energy and robust economic growth by not repeating the mistakes of the past. This decision by EPA will inject a tremendous amount of uncertainty into the market. It would also be counterproductive to your administration’s policy of achieving energy dominance. Just last week, Administrator Pruitt said publicly that these obligations could not be reallocated without an act of congress. That is the right approach. Allowing congress to act would bring certainty and predictability back to the market. I urge you to tell EPA to pull the reallocation of waiver obligations from the RVO proposal.   Respectfully, Dan K. Eberhart, CEO The post President Trump: Don’t Reallocate Blending Obligations appeared first on Canary, LLC.