NCGA disagrees with a potential Renewable Fuel Standard Flexibility Act of 2012. The bill would soothe corn prices when stocks are tight, requiring EPA to drop corn ethanol production quotas by up to 50%, depending on the ratio of corn stocks to use. As this was written, it had not yet been taken up by the House Energy and Commerce subcommittee.

Under USDA’s July estimates, the 2012/13 crop stocks-to-usage ratio is 9.3%, which would mean a 10% reduction in the national quantity of fuel required, says Richard Brock, Brock Associates.

The NCGA “stands firm in its support of the Renewable Fuel Standard (RFS) and will strongly oppose legislation to alter or repeal the RFS,” says NCGA President Garry Niemeyer. “Likewise, we believe it is premature for an RFS waiver at this time. We believe the flexibility of the RFS does work and will work.

“In addition, the ethanol industry now has a significant surplus of ethanol and RFS credits that can greatly offset ethanol’s impact on the corn supply.”