Growth Energy Board Co-Chair and CEO outline flexibility of RFS, correct misinformation


WASHINGTON, DC — Following the recent petitions to waive the Renewable Fuel Standard (RFS) by the Governors of Arkansas, North Carolina, Texas, Georgia and New Mexico, Co-Chairman of Growth Energy’s Board of Directors, General Wesley K. Clark (Ret.) and Growth Energy CEO, Tom Buis sent a letter to the governors explaining why a waiver is unnecessary.

The letter explains the flexibility of the RFS and how obligated parties can easily meet the volume requirements this year.

The letter also goes on to debunk the fallacy of the total corn crop that is actually used in ethanol production.
Commodity prices are increasing, no one is denying that, but the culprit is the drought and a lack of rain, not ethanol. The fundamental fact the governors’ waiver is based upon is patently false. Ethanol production does not use 40 percent of the corn, but only 16 percent of the total net corn acreage. In the production of ethanol, only the starch is removed, so the co-product is a high protein animal feed, known as distillers grains, which not only replaces corn for livestock feed, but also displaces soybean meal.

Additionally, the letter explains that waiving the RFS would not have any significant impact on corn prices and that market factors, speculation and Mother Nature are the true culprits of increased commodity prices.

Finally, the letter highlights that by granting a waiver, the Environmental Protection Agency would be putting a domestic grain embargo in place, limiting the family farmers’ ability to openly sell the short crop they have this year. Inviting government intrusion into the free market by picking winners and losers is not the way to set policy and doing so would depress investment and growth in the production of next generation biofuels.

View the full letter.

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About Growth Energy
Growth Energy represents the producers and supporters of ethanol who feed the world and fuel America in ways that achieve energy independence, improve economic well-being and create a healthier environment for all Americans now.

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