Extended Drought Pushes Corn Prices To Record Highs

The battle over the Renewable Fuel Standard and how much ethanol should be blended into the US fuel system next year is heating up again, with trade groups exchanging punches and lawsuits being filed. The American Fuel & Petrochemical Manufacturers are involved in a war of words with the Renewable Fuels Association and the American Petroleum Institute is suing the EPA over the situation.

AFPM President Charlie Drevna was asked on a media call last week whether AFPM would join the lawsuit against the EPA and he replied, “We’re keeping our options open. You need to file an intent to sue and quite frankly those conversations are going on.”

The industry is waiting for EPA to release the 2014 RFS blending requirements and one of the media call participants asked Drevna if the lawsuit might lead to delays in EPA releasing the 2014 numbers.

“EPA is used to getting sued and we’re used to suing them… I don’t believe they’re foot-dragging because they’re getting sued.” – AFPM President Charlie Drevna

In another twist, the Associated Press today published a story that paints the ethanol industry in a bad light and is releasing the results of an investigation into the environmental footprint of ethanol production. The RFA is calling it a “Smear on Ethanol” and holding a live fact-check webinar this afternoon in order to dispute aspects of the story they claim the AP got wrong. The AP investigative report is entitled “Ethanol’s Environmental Damage: The secret, dirty cost of Obama’s green power push.”

Things are getting ugly indeed, stay tuned…