National Ag News
Ag economist: RIN cap would have ‘dramatic’ impact on RFS volumes
Dec 27, 2017, 16:43 PM
by
System
University of Illinois ag economist Scott Irwin says Texas Senator Ted Cruz’s proposal to cap the price of biofuel credits—or RINs—at ten cents would have a “dramatic” impact on Renewable Fuel Standard volumes.
It would be especially devastating for the biodiesel industry, Irwin says.
“My quick calculations indicate that a ten cent RIN cap would shut down the entire U.S. biodiesel industry,” Irwin says. “I don’t know how to get more dramatic than that.”
Irwin says Cruz’s proposal would also hurt corn-based, conventional ethanol by pushing the mandate down to the level of the E10 blend wall or lower.
