By Chairman Christi Craddick
Texas Insider Report: AUSTIN, Texas – (HOUSTON) – The Lone Star State is blessed with strong energy and agriculture industries, both of which sustain thousands of jobs all over our state and play an important role to our national and economic security.
The mining and utilities industry is the largest contributor to Texas’ GDP, and the food and fiber system is ranked second.
Unfortunately, both industries are falling victim to a broken regulatory framework out of Washington, D.C. Right now, there is debate surrounding the Renewable Fuel Standard (RFS), a federal program requiring transportation fuels to contain a certain amount of renewable resources such as ethanol, specifically as it regards the price of Renewable Identification Numbers (RINs).
The EPA made up RINs with the goal of designing a minimally burdensome enforcement mechanism for the RFS. In fact, when they were first introduced, RINs sold for a penny or two each. Now, however, RIN prices have skyrocketed and cost as high as $1.40 each. These increased costs are putting considerable pressure on Texas refiners as they have had to direct more and more of their bottom line to paying these fees, rather than reinvesting in the state’s economy. As a result, thousands of Texas refinery jobs are at risk.
The most unfortunate part about the RINs system is that those who benefit from it are neither corn farmers nor refinery workers, but rather Wall Street speculators who reap profits from RINs.
Source: Texas Politics