An Agri-Pulse report says it appears that the Trump administration will not be putting a cap on the price of biofuel credits, known as Renewable Identification Numbers.
Ag Secretary Sonny Perdue says the administration will more likely try to bring down the cost of RINs through a vapor pressure waiver that will increase demand for E-15. That’s the outcome favored by the ethanol industry. Perdue described the possible scenario at the National Press Club in Washington, D.C. Perdue says, “We will not see RIN prices capped, but market prices, affecting the RVP waiver, that allows E-15 to be sold year round, which we believe will increase RIN availability and drive down the prices.”
The report says it’s important to remember that the uncertainty created by President Trump’s discussions on biofuel policy have already knocked down RIN prices considerably. It’s interesting to note that since the discussions began in October, when RIN prices were at 98 cents, they’ve now dropped to 38 cents as of last week. “The conversation has already been helpful in that area of driving RIN prices down,” Perdue adds.