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Congressmen urge Renewable Fuels Standard waiver
Story Date: 8/3/2012
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Source: Rita Jane Gabbett, MEATINGPLACE, 8/2/12
A bipartisan group of 156 members of the House of Representatives signed a letter urging the Environmental Protection Agency to act immediately to reduce the Renewable Fuels Standard (RFS) mandate to head off anticipated corn shortages from this year’s drought.
“Another short corn crop would be devastating to the animal agriculture industry, food manufacturers, foodservice providers and consumers,” the legislators said in a letter spearheaded by Congressmen Bob Goodlatte (R-Va.), Steve Womack (R-Ark.) and Mike McIntyre (D-N.C.)
When Congress enacted the expanded RFS in 2007, certain safety valves were put in place. One provision allows the administrator of the EPA to reduce the required volume of renewable fuel in any year based on severe harm to the economy or environment of a state, a region or the United States.
The National Chicken Council, the National Turkey Federation, the National Pork Producers Council and the National Meat Association all praised the legislators’ letter. It comes on the heels of a petition from livestock and poultry groups earlier this week asking for the same action.
Ethanol industry calls foul
Meanwhile, the Renewable Fuels Association CEO Bob Ninneen called a news conference in Washington today to voice opposition to the lawmakers’ plea, saying their actions “will not make it rain in Indiana, bring pastures to life in the Plains or meaningfully lower corn prices.”
He argues the RFS allows obligated parties to meet RFS requirements in a variety of ways other than blending physical gallons of ethanol, noting domestic ethanol demand for corn has fallen nearly 15 percent and production has dropped in the last six weeks.
“Simply put, the RFS is working and knee-jerk reactions to acts of God will not provide the kind of relief some are seeking,” said Ninneen in a news release.
The RFA estimates some 2.5 billion ethanol credits, known as Renewable Identification Numbers (RINs), are currently “in the bank.” These RINs were “banked” in years past as refiners used more ethanol than was required by the RFS.
Should ethanol production be short this year, refiners can use these excess credits to show compliance with the RFS. Substituting paper RINs for physical gallons of ethanol would decrease demand for corn by ethanol producers.
For more stories, go to http://www.meatingplace.com/.
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