WASHINGTON – The American Soybean Association (ASA) today voiced strong opposition to a cap on the price of Renewable Identification Numbers (RINs), an action that would significantly undermine the integrity of the Renewable Fuel Standard (RFS). The concept of a cap on RIN prices has been proposed by Sen. Ted Cruz (R-TX) and has been the subject of discussions during White House meetings with RFS stakeholders over the past few weeks. Biodiesel is a significant market for domestic soybean oil, and ASA President John Heisdorffer, who farms in Keota, Iowa, noted the association’s serious concern with a cap on RIN prices.
“Placing any cap on the price of RINs is a misguided step that destroys demand for biodiesel and other renewable fuels. Analysis from the National Biodiesel Board (NBB) and the World Agricultural Economic and Environmental Services (WAEES) shows up to 300 million gallons in biomass-based diesel volumes would be lost each year as these volumes would no longer be utilized for compliance with the RFS conventional biofuels requirements.
“Furthermore, this idea is simply unnecessary. The RFS program is working as intended – diversifying our nation’s fuel supply, increasing energy security, reducing fuel emissions, and promoting markets for farmers and rural America. RFS stakeholders, including petroleum refiners, have stated that biodiesel is not a problem, yet all of the proposed RFS revisions would first and foremost adversely impact biodiesel. Reduced biodiesel production equals reduced demand for soybean oil, hurting the bottom line for soybean farmers and adversely impacting rural economies. We’re already facing great market uncertainty as a result of the tariffs and trade issues. Action to cap RIN prices and undermine the RFS will exacerbate the economic damage to farm families like mine.
“Soybean farmers remember President Trump’s promise to protect the RFS, and imposing a cap on RIN prices would break that promise. We call on the president to reject this RIN cap concept and keep his word to protect the RFS.”