Don't Mess with the RFS

Resources for the discussion of RINs and the Renewable Fuels Standard

Simple talking points:

  • Increasing ethanol use is important – Blending more homegrown biofuels like ethanol into gasoline lowers the cost to consumers, provides cleaner air, increases our U.S. energy independence, provides nearly 360,000 industry jobs, and helps grind more corn — (ethanol accounted for 30% of total corn demand in 2017).
  • The RFS works — RINs are the market mechanism that drives blending to obligated levels. Any cap or other manipulation would disrupt that mechanism and diminish the related incentive to blend. According to an ISU study, a RIN cap would remove over 700 million gallons from the RFS and lower corn prices by 25 cents per bushel.
  • RVP waiver is the best fix — If Senator Cruz and the refineries’ goal is to stablilize RIN prices, Allowing the RIN market to operate freely with year-round sales of E15 would increase the production and consumption of ethanol, increase the supply of RINs available for compliance and LOWER RIN prices. This can be done by fixing the RVP waiver to allow higher ethanol blends to be sold year-round.