RFA says new FAPRI report shows 4.6 billion gallons of potential demand destruction

September 11, 2018 |

In Washington, recent analysis by economists at the University of Missouri’s Food and Agriculture Policy Research Institute shows that the U.S. ethanol industry could lose 4.6 billion gallons of domestic demand and nearly $20 billion in sales revenue over the next six years if the U.S. EPA continues its current practice of exempting dozens of small refiners from their blending obligations under the Renewable Fuel Standard.

The Renewable Fuels Association said the analysis demonstrates the need for EPA to prospectively reallocate small refiner exemptions to larger refiners to ensure statutory RFS volumes are maintained.

FAPRI recently published an update to its March 2018 U.S. Baseline Outlook for Agricultural and Biofuel Markets. The update adopts a new assumption that future “…implementation of the Renewable Fuel Standard follows recent practices, including small refinery waivers.”

The result of integrating this new assumption into the outlook underscores the impact of the small refiner exemptions on the ethanol industry

Category: Policy

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