By Zack Colman - 08/02/12 07:13 PM EDT
The RFS calls for a certain amount of corn ethanol to be blended into traditional transportation fuel each year. Dinneen said the original mark for 2012 was 13.2 billion gallons, but EPA has revised that downward to 13 billion gallons in response to decreased overall demand for gasoline.
Growth Energy CEO Tom Buis said he's never heard a "bigger whopper" in Washington than the argument that the RFS is hurting food supplies.
In a response to a question from E2-Wire, he said Congress should not try to “out-guess” the market by calling for an RFS waiver. Crop yields could rebound to drive prices back down like they did in 2008, which was when Texas Gov. Rick Perry (R) asked for an RFS waiver for economic reasons, he said. EPA denied Perry’s request.
“We’re in that crazy part of the year,” Guis said of corn prices. “It’s kind of the silly season on speculation at this point.”
Dinneen and Buis cautioned lawmakers and the EPA about acting prematurely on the RFS. They said ethanol producers already are curtailing production in response to the high prices. And in previous years, ethanol refiners had overproduced corn ethanol, leaving about 800 million gallons sitting in stocks and 2.5 billion gallons worth of credits that refiners can use this year and next.