The ethanol industry is concerned about the ongoing talk of a proposed cap on RIN prices that the ethanol industry equates to a dismantling of the Renewable Fuels Standard. South Dakota Corn Executive Director Lisa Richardson the President is proposing to grant the Reid Vapor Pressure waiver for year-round use of E15 in exchange for a cap on RIN prices. She says the President seems to think that’s a fair trade, but it’s a non-starter for ethanol supporters.
She says an RVP waiver would allow more ethanol to be blended, which would lower the price of RINs. While President Trump claims to support the Renewable Fuels Standard, she says a RINs cap would allow oil refiners to get their way.
Richardson says Senator Ted Cruz is also getting exactly what he wants. Even if no deal is cut, she says the fear of a cap has caused RIN prices to drop from 70-cents to 45-cents per gallon. This makes it much cheaper for refiners to purchase those credits and blend ethanol.
