Waiver Denial is Proof the RFS is Working, Highlights Inherent Flexibility

November 16, 2012

Waiver Denial is Proof the RFS is Working, Highlights Inherent Flexibility

(November 16, 2012) WASHINGTON – On August 13, 2012, the first of several Renewable Fuel Standard (RFS) waiver requests were filed with the Environmental Protection Agency (EPA).  To obtain a waiver, a petitioner had to provide data proving that there was severe harm to the economy of a state, a region, or the United States and that the harm was directly caused by the RFS.  After more than 90 days of consideration of submitted comments, the EPA has announced that the evidence provided did not meet the statutory threshold.

Bob Dinneen, President and CEO of the Renewable Fuels Association, commented on today’s decision.  

“The EPA made the right decision today.  We applaud the EPA for basing its decision on thoughtful analysis of the facts and not emotion or panic.  The RFS is working as designed.  The flexibility that is built into the RFS allows the marketplace to ration demand, not the government.  Indeed, the ethanol industry has responded to the market by reducing output by approximately 12%.  Other users of corn have responded to a lesser degree.  Maintaining the RFS is in the best interest of both U.S. agriculture and American consumers.  The RFS is resulting in greater energy independence and diversity, real job creation, lower gas prices, and a cleaner environment.” 

Dinneen continued, “Moving forward, we need a more constructive dialog with livestock and poultry groups about the real causes of high feed costs and the impacts on retail food prices.”