North Carolina, Arkansas, Maryland and Delaware Request Renewable Fuel Standard Waiver
by Jim Lane (Biofuels Digest) In Washington, the governors of North Carolina, Arkansas, Maryland and Delaware made a formal request for a waiver of the Renewable Fuel Standard, in response to the 2012 US drought, which has caused a sharp fall in US corn crop estimates.
Yesterday, the RFA conducted a webinar on the topic which can be replayed here.
…“Globally, total grain output (coarse grains, wheat, rice) was cut 2.9%, total grain supply was cut 2.1%, and grain ending stocks were reduced 4.3%. Still, 2012/13 global grain output would be the second largest on record, trailing only last year. Based on today’s USDA estimates, the U.S. ethanol industry will use 2.9% of the world grain supply on a net basis in 2012/13, the lowest percentage since 2008/09. While global grain ending stocks are projected lower in 2012/13 than in recent years, they are still estimated to be nearly 4% larger than the 10-year average.
…“The RFS already includes a number of compliance options allowing great flexibility for oil refiners to meet their obligations under the program. The market is already taking advantage of these flexibilities as ethanol production has slowed 15% since the beginning of the year in response to market signals.
“To be clear, a waiver of the RFS will not provide the relief meat and livestock producers seek nor will it make it rain on dry corn fields and pastures. What waiving the RFS would do is send chilling signals to investors in new biofuel technologies, threaten to force gas prices higher than they already are, and dramatically lower the availability of ethanol feed products on which the livestock industry is growing to rely. READ MORE