POET on Oct. 12 submitted comments to the U.S. Environmental Protection Agency regarding the requests to temporarily waive the Renewable Fuel Standard (RFS).
POET’s comments addressed three key issues in the debate.
- The RFS has built-in provisions for temporary supply disruptions such as this year’s drought.
“That program was designed specifically to provide for flexibility in the mandate in years like this and to allow the market to dictate lower ethanol levels without the need to grant a waiver. The evidence shows that the marketable credit trading program will alleviate the impacts of the drought conditions this year, and POET urges EPA to let Congress’s program— and the market—work as designed.”
- Ethanol’s use of corn is over-stated.
“The ethanol industry uses corn to make two primary products: ethanol and distillers’ grains animal feed. Once this important co-product is taken into account, only 17.5% of corn acres are used to produce ethanol.”
- A waiver would have a serious impact on efforts to commercialize cellulosic ethanol.
“Granting a waiver of the RFS will send the wrong signal to the investment community and could make it impossible for companies such as POET to attract the capital needed in order to commercialize cellulosic ethanol.”