Tell Governors No to RFS Waiver

As the political frenzy heats up leading into the Democratic and Republican Conventions, the ethanol industry’s campaign to stop a waiver to the Renewable Fuels Standard (RFS) is heating up as well. This week, several ethanol organizations have sent out letters to key legislatures including governors explaining why there is no need for a waiver. The governors who are advocating for a waiver include Arkansas, North Carolina, Texas, Georgia, and New Mexico.

The letter from Growth Energy supports statements made by others in the industry including an explanation of the inherent flexibility built into the RFS and how obligated parties can easily meet the volume requirements this year. The letter also debunks the fallacy of the total corn crop that is actually used in ethanol production. In addition, the letter explains that waiving the RFS would not have any significant impact on corn prices; rather, commodity prices are affected by speculation and Mother Nature.

Growth Energy
CEO Tom Buis dropped by the Farm Progress Show Tuesday just before heading to Tampa for the Republican convention and Cindy Zimmerman was able to speak with him in more detail about why a waiver for the RFS would not help, but hurt farmers, the ethanol industry and most important consumers.

You can listen to the full interview with Tom Buis here: Tell Governors No to RFS Waiver

Renewable Fuels Association President and CEO Bob Dinneen said in his organization’s letter, “The rash of governors rushing to appease the pleas of the livestock and food processing industries are ignoring the damage a waiver would do to consumers at the pump. Removing ethanol from our fuel mix would drive oil and gasoline prices higher, adding pain at the pump and increased cost at the checkout counter due to higher energy costs for farmers, food processors, and food transporters. These increases in gas prices would far outpace any negligible relief to food prices from a waiver. The alleged economic harm cited by these governors does not rise to the kind of economic harm EPA determined necessary to waive the RFS. The facts cited in support of their case also fail to pass muster.”

2 thoughts on “Tell Governors No to RFS Waiver

  1. Common sense tells you that if the government has to subsidize corn based ethanol to make it affordable and the government has to force the fuel industry to blend corn ethanol into their gasoline to make sure people buy it; it can’t be any good. Curiously enough, Bob Dinneen deliberatel failed to mention several of the very real but hidden high costs paid by the consumers and taxpayers as a direct consequence of blending corn ethanol into gasoline. Consider also that because American corn ethanol is more costly to produce than the more efficient Brazilian sugar based ethanol, the government placed a very high tarriff on Brazilian ethanol to discourage and/or eliminate its importation and use. Long story short; America’s corn based ethanol program has increased the cost of food and fuel and it is counter-productive to relieving the global famine.

  2. Michael
    You are very misinformed about gasoline today. The oil refineries make a cheaper fuel because of ethanol. If anyone is forcing you to purchase E10 fuel it is the oil industry. They like E10 since it helps their profit margins. There is nothing in the 200 possible hydrocarbons of gasoline that can raise octane levels like ethanol. One gallon of ethanol could displace two gallons of aromatics if the oil industry wanted to make a cleaner low cost fuel. The problem lies in that the oil companies just want to make a cheaper gasoline. Most gasoline today can’t be sold unless ethanol is added since only with ethanol can that gallon of gasoline meet minimum octane of 87.

    Octane does matter, and if you could just added ethanol to E10 to create E15 or E20 today, most will not lose mileage. E20 having the performance of Premium but cheaper than regular. The additional octane can offset the 3 percent less energy difference alone with better performance. There are thousands of consumers today who have access to blender pumps that are seeing this advantage.