Recent actions by EPA have effectively reduced the Renewable Fuel Standard conventional renewable volume obligation (RVO) for 2016 by more than 1 billion gallons, and the agency appears poised to take similar actions to effectively reduce the 2017 and 2018 conventional RVOs by comparable amounts. These cuts have resulted in significantly lower prices for Renewable Identification Numbers, reduced corn and ethanol demand, avoided legal obligations for highly profitable businesses, and windfall profits for certain small oil refiners. In total, nearly 2.4 billion gallons of ethanol demand and 860 million bushels of corn demand have potentially been lost over the past two compliance years due to EPA's recent actions. Please read my full blog post here.
