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