A new analysis by University of Illinois economist Scott Irwin finds that the impact of a 10-cent cap on RIN prices, as proposed by Texas Sen. Ted Cruz, would be “catastrophic” for the renewable fuels industry. Specifically, such a price cap would serve as the mortar in the oil industry’s attempt to rebuild the “blend wall.” Irwin finds that “…the …
Perdue Pledges “Unequivocal” Support for RFS
A lot of drama and speculation preceded the appearance of Agriculture Secretary Sonny Perdue at Commodity Classic, thanks to some reports questioning his support for the Renewable Fuel Standard (RFS), so he wasted no time in stating his “unequivocal” support for the law. “I have not and will not support any policies in this country that diminish the demand, undermine …
Northey Confirmed But No White House Deal on RFS
Bill Northey is at last free to take the job at USDA that he was nominated for almost six months ago after Sen. Ted Cruz (R-TX) lifted his hold on the nomination and allowed the confirmation Tuesday. The Senate confirmed Northey on a voice vote to become USDA’s undersecretary for farm production and conservation as Sens. Cruz, Pat Toomey (R-PA), …
Industry Groups Anxious About White House RFS Meeting
Biofuels and agricultural groups are anxiously awaiting the outcome of a meeting today between President Trump and four Republicans senators over the Renewable Fuel Standard (RFS) Trump will be meeting with Sens. Ted Cruz (R-TX) and Pat Toomey (R-PA), who want to see changes in the RFS to protect refiners, and Iowa Sens. Charles Grassley and Joni Ernst, who want …
New Analysis Shows RIN Prices Could Fall
A new analysis from the University of Illinois shows conditions that caused high conventional biofuel (D6) RIN prices are changing rapidly and that “…it is not out of the realm of possibility for D6 RINs prices to fall back their pre-2013 level of just a few cents without making any changes to the RFS.” According to a release from the …
RFA CEO Blasts Sen. Cruz in Texas
The National Ethanol Conference is being held in San Antonio, Texas this week, so to start the meeting on a high note, Renewable Fuels Association President and CEO Bob Dinneen had a scathing editorial published in the local paper challenging Sen. Ted Cruz (R-TX) to stop scapegoating the RFS. “He is holding it [vote for Bill Northey’s appointment to Under …
Senators Speak Out to Approve Northey Nomination
After nearly four months of having the nomination of Iowa’s Bill Northey to the U.S. Department of Agriculture held up by Senator Ted Cruz (R-TX), Sen. Chuck Grassley (R-IA) brought it up on the Senate floor Wednesday and called on other colleagues to back him up. Northey was nominated to be USDA Under Secretary for Farm Production and Conservation in …
Harvard Professor Says RVP Parity Will Lower RIN Prices
A professor of economics at Harvard University claims that providing RVP parity for E15 would be the most direct way to lower RIN prices. A recent paper from economist Professor James H. Stock argues that providing RVP parity for E15 would facilitate increased ethanol blending, which in turn would drive increased generation and availability of RIN credits and ultimately lower …
Grassley Disputes Negative Impacts of RFS on Refineries
Sen. Chuck Grassley (R-IA) is challenging claims that the Renewable Fuel Standard (RFS) was responsible in part for the recent bankruptcy filing of Philadelphia Energy Solutions (PES). Grassley released an internal memo produced by his energy policy staff who analyzed the situation and found that the biofuels blending requirement and the cost of Renewable Identification Number credits (RINs) “have little …
Over 30 States Broke Blend Wall in 2016
The latest data from the U.S. Department of Energy (DOE) shows that gasoline consumed in 30 states and the District of Columbia in 2016 contained more than 10 percent ethanol on average, breaking through the so-called E10 Blend Wall. That compares to 2015 when the national average ethanol content was 9.91 percent and 25 states (plus the District of Columbia) …