You’ve no doubt heard by now that there are cries from many corners of Washington, DC, and beyond for U.S. Environmental Protection Agency Administrator Lisa Jackson to begin the process of waiving the ethanol blending requirements established by Congress in the Renewable Fuels Standard (RFS). Not so fast! According to the International Energy Agency (IEA), the corn and ethanol market is doing its job.
The IEA pointed out in their monthly report that there are some 800 million gallons of surplus ethanol available to the fuel market. In addition, about 2.5 billion credits (RINS) are available to petroleum marketers, as well, in the form of credits for using more ethanol than the (RFS) required in times past. Between the surplus ethanol and the RINS, the markets have already absorbed much of any corn price consequences. Read more about RINS, their meaning, and role by clicking HERE.
The Illinois Corn Growers Association remains supportive of the waiver process that is available to stakeholders in the petroleum blending industry, as well as states. ICGA believes that the waiver process should be used if stakeholders find it necessary. However, with harvest yet to begin in earnest, we feel that it is premature for the U.S. EPA to start the waiver process.