Valero chief executive Joe Gorder said he "would not believe anything you read" as rumors swirl around talks within the Trump administration to make changes benefiting merchant refiners.
"I try not to read all that stuff" and would wait to see details of any change to the Renewable Fuel Standard come from the White House or Environmental Protection Agency leadership, Gorder said at the Merrill Lynch 2017 Refining Conference in New York.
The Trump administration is considering changes to who must ensure that rising volumes of renewable fuels enter the US transportation fuel supply each year.
The White House does not have a pending executive order planned on the regulation, according to a spokeswoman. But the administration did not respond to questions on whether such talks were underway.
For the past ten years, the point of obligation for that mandate has landed at refiners, importers and certain other companies that produce that fuel.
Those companies prove their compliance by gathering renewable identification numbers (RINs) generated when renewable fuels are blended with conventional blendstocks to make finished fuels. Valero and other merchant refiners that lack blending infrastructure must purchase RINs from companies that do.
Merchant refiners have argued blenders that have no obligation to meet the mandates have stymied the increase of US biofuel consumption and unfairly profited off of refiners under the program. Supporters of the current mandate have said refiners fighting to keep market share would make biofuel blends more expensive and overly complicate the program through their proposed change.
Valero operates the third-largest US ethanol producing capacity in addition to the largest independent refining system. The company was in favor of higher ethanol consumption, Gorder said.
But Gorder said the business community should be encouraged that the current administration would not favor regulations that are "punitive [only] because you do not like a particular business."
