Negative response to RFS waiver petition
“Many of our farmer members are suffering immensely from the drought. Many are also in the same predicament as our customers because they have livestock or own ethanol plant shares. Now is the time for all of American agriculture to pull together and work together for solutions that benefit us all,” Niemeyer said.
Dinneen provided a technical explanation of the flexibility in the RFS. He noted that ethanol producers can “bank” excess Renewable Identification Number (RIN) credits and use them for compliance in the following year. “It is estimated that some 2.4 to 2.6 billion excess renewable fuel RIN credits are currently available to obligated parties, equivalent to nearly 20 percent of this year’s RFS renewable fuel requirement,” he said. That supposedly then can reduce corn demand by 20 percent for this crop year
As in the past, the RFA noted that ethanol stocks currently stand at 800 million gallons. Moreover, ethanol exports—which reached record levels in 2011—are slowing dramatically to compensate for current market conditions. These both help reduce ethanol demand in conjunction with the RINs.