US railroads join fight over biofuel law

Chicago

US railroads, including Warren Buffett's BNSF, are joining a corporate brawl over ethanol mandates that pit American corn farmers and fuel distributors against independent oil refiners such as billionaire Carl Icahn.

The American Association of Railroads (AAR), which represents the interests of BNSF, Union Pacific Corp, CSX Corp, Norfolk Southern Corp and others, is pushing back against calls by Mr Icahn's CVR Energy Inc and Valero Energy Corp for changes to the Renewable Fuel Standard, the law that requires escalating amounts of biofuel to be mixed with petroleum.

At issue is who is responsible for showing compliance with the programme. Adherence is tracked by paper credits that have become more expensive in recent years. Refiners argued that the costs are exorbitant and that the Environmental Protection Agency (EPA), the regulator …