The Renewable Fuels Association was booted from a coalition of biofuels groups after it announced the Trump administration would propose a major rewrite of a federal regulation requiring the blending of ethanol with motor fuels—a claim the White House has since denied.

The Renewable Fuel Standard requires ethanol and other biofuels must be blended with petroleum-based fuels. Currently, blending is done by oil refiners, but in a statement issued Tuesday, RFA CEO Bob Dinneen said his group had been told by a Trump official the president would soon sign an executive order shifting that burden to fuel retailers.

Dinneen's announcement brought a swift rebuke from other ethanol groups, the Des Moines Register reported. RFA was accused of trying to negotiate a backroom deal with Trump adviser Carl Icahn, a billionaire investor in CVR Refining, an oil refiner that would profit from the change in regulation. In return for the revisions, the association allegedly sought to allow the sale of more gasoline blended with 15 percent ethanol—or E15—during summer months. (Most gasoline is currently E10.)

Among the critics of the alleged deal was Emily Skor, CEO of the ethanol association, Growth Energy. She noted said RFA "does not represent the majority of the biofuels industry" and that its largest member, Valero, is an oil refiner that would also profit from the change.

"This is precisely the sort of self-serving insider deal the American consumer rejects," Skor said. "The administration must reject any such proposed deal and protect the program that has been working for 11 years to deliver better, cleaner and more affordable choices at the pump." http://bit.ly/2m0g99s

The White House later distanced itself from Dinneen's comments, saying no such executive order was in the works. At the same time, Fuels America—a coalition of biofuel associations—cut ties with RFA.

"Despite our opposition, the Renewable Fuels Association has elected to lend its support to Mr. Icahn's efforts," the coalition said in a statement. "Accordingly, RFA's position is no longer aligned with America's biofuel industry and the Fuels America coalition has resolved to sever ties with the group." http://bit.ly/2mxdrLx

Dinneen told the Des Moines Register his group has "great respect for the Fuels America coalition" and believes in its mission. He also said their had been "misinformation" about his group's communications concerning the executive order, but didn't elaborate. http://dmreg.co/2mPEyO4

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