Big Oil’s Big Stall

American Coalition for Ethanol (ACE) Executive Vice President Brian Jennings responded Wednesday to Big Oil’s latest attacks on the Renewable Fuel Standard (RFS). “The RFS is not about the oil industry’s comfort; it is about providing cleaner American-made alternatives to consumers,” said Jennings. “The RFS costs taxpayers nothing and is doing exactly what Congress intended; saving consumers money at the pump and providing them access to new affordable blends such as E15. The RFS is also disrupting the lucrative choke-hold oil companies have on the market. As a result, Big Oil is desperate to repeal the RFS this year.”

“With respect to Renewable Identification Numbers (RINs), every time a refiner blends a gallon of ethanol with gasoline, they get a RIN for free. When they purchase more ethanol than the annual RFS obligation, RINs are a reward and provide value to them. The fact there are 2.5 billion excess RINs available for use in 2013 is proof that over-compliance has been commonplace with oil companies. Refiners only have to buy RINs if they refuse to follow the law, and that’s what this is about – they have had more than six years to evolve and comply with the law, but have refused to adapt and change. Most refiners are trying to keep an oversupply of RINs on hand, to be sure that they are able to control the marketplace. The current Big Oil hue and cry isn’t about ethanol supply; it is fear of actual competition,” said Jennings.

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