The bottom paragraph of the article you posted, gives a good editorial on what is wrong.
Excerpt from Farm Forum: RINs provide the financial backing needed to incentivize drivers to purchase E15 and E85 blends. However, a second SRE study found that these exemptions have led to a decline in the price of RINs. If SREs continue to drive down RIN prices, it could eliminate the incentive to consume higher ethanol blends above the E10 blend wall and significantly reduce demand for E15 and E85. Put simply, SREs have not stifled ethanol demand for E10 but could contribute to a decrease in demand for E15 and E85 in the future. Still, SREs are not the real problem. The larger issue is that the RFS program is no longer driving demand for ethanol and becomes less sustainable with each new short-term fix that’s implemented. It is time for industry stakeholders to admit that the RFS is no longer the best avenue to boost domestic fuel markets and our current approach to RFS reform is failing. Instead, the oil and biofuel industries must come together and work with members of Congress to produce a viable long-term solution that improves market viability and benefits all stakeholders involved. READ MORE |