NEW YORK, July 12 (Reuters) - A bipartisan group of U.S. lawmakers introduced legislation this week directing the Biden administration to allow oil refiners to purchase compliance credits for U.S. biofuel blending laws at a lower, fixed cost compared to the open market.
The proposal would reduce rising compliance costs associated with the U.S. Renewable Fuel Standard (RFS) and aim to help struggling refineries stay afloat at a time of great flux in the global energy markets, lawmakers said.
Oil refiners argue the mandates are pricey, while biofuel proponents like ethanol producers and corn farmers like the obligations because it increases the market for their products.
Renewable fuel credits traded at $1.54 each on Tuesday after the bill came out, down from $1.56 prior, traders said.
Credits traded on Wednesday between $1.55 and $1.56 each amid U.S. government data release.
Persons:
Biden, refiners, ”, Chris Coons, Bob Casey, Brian Fitzpatrick, Joe Biden's, Stephanie Kelly, Susan Heavey
Organizations:
YORK, U.S . Renewable, Democratic, Republican U.S, Republican, Thomson
Locations:
U.S