Icahn’s RIN business continue to create concern. Elizabeth Warren and 7 other Democratic senators are calling on U.S. regulators to open an investigation into Carl Icahn’s activities in the market for renewable fuel credits, citing “troubling” evidence concerning the billionaire investor and adviser to President Donald Trump.
On May 9, a group of senators issued a letter to the heads of the U.S. Commodities Futures Trading Commission, the Securities and Exchange Commission and the U.S. EPA calling for an investigation of Carl Icahn for potential insider trading and market manipulation related to the market for renewable identification numbers (RINs), which are used by obligated parties to comply with Renewable Fuel Standard regulations.
Icahn is the majority owner of CVR Energy, which is a petroleum refining company involved in the RIN market. In late December, he was also named as a special advisor to President Donald Trump on issues related to regulatory reform.
In the letter, the senators said that “Icahn ‘made a massive bet in 2016’ that the price of renewable fuel credits would drop,” and noted that he, as an unpaid advisor to Trump, recommended personnel and policies that caused the price of these RIN credits to drop.
“The net result was an ‘impossible’ ‘rare profit’ on the credits, ‘a $50 million turnaround’” from Icahn’s initial investment, continued the senators in the letter. According to the senators, these actions and profits raise questions over whether Icahn may have violated conflict-of-interest rules that apply to government officials.
The letter cites reports that Icahn advised Trump to nominate Scott Pruitt, a critic of the RFS program, to serve as administrator of the EPA. The letter notes that RIN prices dropped by nearly 20 percent following Pruitt’s nomination.
In addition, the senators note that press reports in late February indicating Icahn had presented the White House with executive language to modify the RFS, RIN prices dropped again, reaching a 17 month low. The letter credits these actions with contributing to a 70 percent decline in RIN prices when compared to the November peak cost of the credits.
The letter is signed by eight senators.
@This article is published by conbio.info 2017-05-15 and has ben edited by Lennart Ljungblom. conbio.info is focusing on news that may have an impact on bioenergy business and also bioenergy news with impact on society and other relevant areas, on line since 2013.