Renewable Fuels Standard

The Renewable Fuels Association National Ethanol Conference (NEC) concluded on February 13. During the last few quarters, ethanol margins have been at the lowest levels in many years resulting in reduced production and the permanent closure of some plants. A number of plants are seeking buyers. In this climate, the focus of the NEC was on the future of the industry. Here are some key points gleaned from multiple conference presentations.
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biofuels-refinery-cornfield-iStock_000014433282_LargeAn uptick in recent federal enforcement actions involving renewable fuel credits is signaling that market participants can expect more fraud investigations and prosecutions as federal regulators strive to maintain control over the renewable fuel credit program.  The enforcement actions involve the trading of Renewable Identification Numbers (RINs) under the Renewable Fuels Standard (RFS) program.
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