“Today’s announcement from the U.S. Environmental Protection Agency (EPA) regarding the denial of the Renewable Fuel Standard waiver petition filed by the governors of Arkansas and North Carolina is extremely disappointing,” said Joel G. Newman, AFIA president and CEO.
“EPA’s action is extremely short-sighted. EPA only looked at the potential price impact of the RFS, not the larger issue of access to corn by all end-users, including the feed, poultry and livestock and pet food industries,” Newman added. “The U.S. priority on food security must be at least as high as the priority placed on future energy security, especially during a time when so many Americans are already struggling to feed their families.”
In comments submitted to EPA last October, AFIA strongly urged the agency to rely on market conditions to determine the allocation of the reduced corn crop, rather than allowing a government mandate to allocate a major portion of the crop. AFIA continues to support the eight governors’ petitions for a waiver of the ethanol RFS for the remainder of 2012 and all of calendar 2013.
“AFIA will call on Congress and the Administration to not let this issue be ignored. Congress must pass and implement an RFS temporary trigger mechanism based on the USDA-calculated corn stocks-to-use ratio. This solution is recommended in H.R. 3097, the Renewable Fuel Standard Flexibility Act, introduced by Reps. Bob Goodlatte (R, Va.) and Jim Costa (D, Calif.) with bipartisan support from more than 30 members of the House,” Newman stated.