RFA Statement on EPA and Demand Destruction from Refinery Exemptions
August 20, 2019 – Today, an EPA spokesperson said there was “zero evidence” of demand destruction for ethanol due to the numerous refinery exemptions allowed by the Environmental Protection Agency. The following is a statement from RFA President and CEO Geoff Cooper.
“To suggest that there is ‘zero evidence’ of ethanol and corn demand destruction from small refinery waivers is as insulting as it is absurd. On the same day that EPA made this asinine assertion, two more ethanol plants announced they are idling production. At least 15 ethanol plants have now shut down or idled since EPA began its refiner bailout bonanza last year, and more than 2,500 jobs have already been affected. Ethanol production and demand continue to slide, prices continue to sink, and margins continue to bleed red. Meanwhile, the waivers are eroding corn demand, with USDA cutting its estimate of corn use for ethanol by 225 million bushels—equivalent to erasing demand for the entire Michigan corn crop. Farm bankruptcies and debt are on the rise, and farm income is plunging. Yet, EPA pretends nothing is wrong. Rome is burning, while EPA plays Nero’s fiddle.”