Home Energy RFA Backs Administration Position on RFS

RFA Backs Administration Position on RFS


Renewable Fuels Association President and CEO Bob Dinneen says USDA and the EPA have responsibly answered the panicked appeals to modify or dismantle the RFS – plainly stating that consideration of waiving the program is simply not warranted. Dinneen shared his thoughts in a letter to U.S. Ag Secretary Tom Vilsack and Environmental Protection Agency Administrator Lisa Jackson. According to Dinneen – their comments have provided the kind of certainty and security that is necessary to ensure the renewable fuels industry continues to evolve. Further – he says remarks from both agencies regarding the RFS serve as important signals to the investment community that the nation’s commitment to diversifying our fuel supply and creating a future market for new advanced biofuel technologies remains intact.

In his letter – Dinneen underscored how the flexibility built into the RFS program was designed to accommodate marketplace anomalies like this summer’s drought. He pointed to the billions of RINs available – as well as the recent analysis of Bruce Babcock at Iowa State University that found a waiver might result in only a 4.6-percent reduction in corn prices. When all the facts are on the table – Dinneen wrote – it becomes abundantly clear that waiving or altering the RFS in any way at this time would not be prudent and would not have a meaningful impact on corn prices or availability for feed use. According to Dinneen – market signals and the flexibility of the RFS are already working to ration demand in anticipation of a shorter-than-expected grain crop. Even if ethanol production is significantly reduced as a result of tighter supplies of corn in 2012-13 – Dinneen concludes obligated parties should have very little difficulty in meeting their obligations under the RFS for 2012 and 2013.


Source: NAFB News Service