Perdue-Unlikely Administration Will Cap RINs03/21/2018
Agriculture Secretary Sonny Perdue appears to be ruling out the possibility that the Trump administration will cap prices for biofuel credits, or RINs. The administration will instead try to bring down RIN prices through a vapor-pressure waiver that will increase demand for E15.
Perdue outlined that scenario, which is the outcome favored by the ethanol industry, in remarks yesterday at the National Press Club.
“We will not see RINs capped, but market prices, affecting the RVP waiver, that allows 15 percent, E15 to be sold year-round, which we believe will increase RIN availability, driving RIN prices down,” Perdue said.
Keep in mind: Perdue noted that the uncertainty created by President Trump’s negotiations on biofuel policy has driven down RIN prices. “It is interesting to note that since this began in October, RINs were 98 cents now, and they were 38 as of last Friday, so the conversation has already been helpful in that area of driving RIN prices down.”
Still, Perdue’s comment on the RIN cap is important. Sen. Chuck Grassley, R-Iowa, said he feared that the temporary RINs cap that President Trump suggested earlier this month is still in play. “I went away from that meeting with the feeling that the president really doesn’t understand the damage that a cap on RINs will do” and would be a “reasonable compromise.”