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Agricultural News

RFA Urges Swift Rejection of Arkansas Governor's Request for RFS Waiver

Wed, 15 Aug 2012 10:24:09 CDT

RFA Urges Swift Rejection of Arkansas Governor's Request for RFS Waiver
The Renewable Fuels Association responded to a second filing by a governor seeking to waive the Renewable Fuel Standard (RFS). This request was filed August 13 by Arkansas Governor Mike Beebe.

RFA issued the following statement: “EPA should combine the requests of Governor Beebe and Governor Perdue and reject them both. Waiving the RFS is a solution that will not solve the problem. Just like in 2008, seeking to reduce U.S. ethanol production will not bring about the return to undervalued corn sought by meat groups and food processors. The fact is that waiving any portion of the RFS would likely lead to higher prices at the pump, a greater dependence on imported oil, and a chilling slowdown in new biofuel technology investment and development.

“The RFS is a remarkably flexible program allowing a variety of options for oil refiners to meet their obligations. The market is already taking advantage of this flexibility by reducing ethanol corn demand by 12% in just the last two months. A mountain of excess RFS credits, strong ethanol supplies, and continued demand for ethanol as a fuel additive make any waiver of the RFS unnecessary.

“The RFA looks forward to weighing in on this debate and once again demonstrating that waiving the RFS does far more damage to the American economy and our nation’s goals of energy security than any damage currently alleged by these governors. These waivers simply do not meet the standard of severe economic harm set by EPA in 2008.”

On Tuesday, the RFA presented a webinar on the lack of evidence supporting a waiver. That webinar can be viewed by clicking here.

RFA Chairman and KAAPA Ethanol CEO Chuck Woodside also weighed in on the lack of need for an RFS waiver. Click here for Woodside's comments. Chuck’s take can be read here.



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