Icahn’s Oil Refiner Reports Plunge in Biofuels Bill in First Quarter
by Jarrett Renshaw and Chris Prentice (Reuters) Biofuels compliance expenses for CVR Energy’s refining unit fell to the lowest level in almost five years during the first quarter, the company said on Thursday, as the U.S. government weighs an overhaul of its renewable fuels policy.
The cost of compliance credits required by the Renewable Fuel Standard (RFS) have fallen sharply in recent months, driven in part by a proposal to alter the regulation by shifting the blending burden away from refiners to fuel terminals.
The proposal was made in February by Carl Icahn, the majority owner of CVR Energy and an informal adviser to President Donald Trump on regulation. The White House is considering it. CVR said it spent $6.4 million on the compliance credits in the quarter. That was down 85 percent from last year, the company said on a conference call with investors to discuss quarterly earnings. CVR attributed the decline in part to lower prices.
Renewable fuel credit prices averaged about 53 cents in the first three months of 2017, about one-third lower than the prior-year, Oil Price Information Service data show. CVR declined to explain in greater detail the full reasons for the sharp reduction.