Should the Renewable Fuel Standard be waived in times of drought?

The document examines requests from livestock producers and state governors to waive the Renewable Fuel Standard (RFS) to lower corn feed prices during a drought. It argues against a waiver, noting that ethanol production has already decreased, tradable credits provide flexibility, and a waiver would only marginally lower corn prices while severely harming the biofuels industry and its investments.

• The EPA has the legal authority to waive the Renewable Fuel Standard if it is determined that the mandate would severely damage the economy of the United States, a specific region, or a state.
• For 2012, the EPA required fuel refiners to blend 13.2 billion gallons of corn-based ethanol into gasoline, requiring approximately 4.7 billion bushels of corn, though about 35 percent of that volume returns to the feed market as high-protein rations.
• Arguments against a waiver include the fact that corn ethanol production fell by more than 13 percent from early June due to low demand and high prices, and that the RFS allows blenders to use tradable credits to shift roughly 2.4 billion gallons of blending requirements between years.
• Analysis from Iowa State University's Center for Agricultural and Rural Development suggests a waiver would only decrease corn prices by approximately 4.6 percent (28 cents) compared to current policy, assuming maximum tradable credits are carried over.
• The document argues that a waiver would negatively impact the biofuels industry, which has seen tens of billions of dollars in investment and the creation of hundreds of thousands of jobs since the RFS was enacted in 2005 and expanded in 2007.

APA

Environmental and Energy Study Institute (2012). Should the Renewable Fuel Standard be waived in times of drought? https://www.eesi.org/articles/view/should-the-renewable-fuel-standard-be-waived-in-times-of-drought

Chicago

Environmental and Energy Study Institute. Should the Renewable Fuel Standard be waived in times of drought? 2012. https://www.eesi.org/articles/view/should-the-renewable-fuel-standard-be-waived-in-times-of-drought.

Wikipedia

{{cite press release |author=Environmental and Energy Study Institute |title=Should the Renewable Fuel Standard be waived in times of drought? |date=3 August 2012 |url=https://www.eesi.org/articles/view/should-the-renewable-fuel-standard-be-waived-in-times-of-drought |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{environmentalandenergystudyinstitute2012should, author = {{Environmental and Energy Study Institute}}, title = {{Should the Renewable Fuel Standard be waived in times of drought?}}, publisher = {Environmental and Energy Study Institute}, year = {2012}, month = aug, url = {https://www.eesi.org/articles/view/should-the-renewable-fuel-standard-be-waived-in-times-of-drought}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }