A Waiver that Wouldn’t Be Wise

August 27, 2012

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by Adam Monroe (News Observer) Last week Gov. Beverly Perdue filed a waiver request for the Renewable Fuel Standard, one of the nation’s most successful energy policies and of critical importance to North Carolina’s economy, jobs and agriculture. Her rationale is that the ethanol industry is affecting corn prices for livestock producers during a year of extreme drought. While we understand this is a short-term decision, it has long-term effects for North Carolina and our nation.
...Almost two-thirds of future Renewable Fuel Standard volumes are allocated for advanced biofuels like cellulosic ethanol made from agricultural waste, municipal solid waste and purpose-grown energy grasses.
...North Carolina drivers and taxpayers have already experienced clear benefits:
Biofuels are now 10 percent of our nation’s fuel supply. They provide more fuel to the United States than we currently import from Saudi Arabia.
• 400,000 direct and indirect jobs, combined with the potential for 800,000 more with continued production of advanced biofuels in all 50 states.
• Gross Domestic Product contribution of $40 billion. In 2011, ethanol contributed $42.4 billion to the GDP and added $29.9 billion to household income.
• Consumer savings at the pump. The impact of 13.95 billion gallons of ethanol blending on gas prices in 2011 was an $0.84 – $1.09/gallon savings at the pump, according to a recent Iowa State University study.

...Due to the high price of corn, our industry has already adjusted to the market and is using 14 percent less corn.

...Waiving the Renewable Fuel Standard is a short-term solution that analysts and experts from Morgan Stanley and Purdue University agree might have little effect on corn prices. But this action would have serious long-term consequences for our state and nation in the way of lost jobs, lost revenues, poor air quality and associated health problems and continued energy dependence on foreign oil. READ MORE and MORE(Advanced Biofuels Association/Reuters) and MORE (National Public Radio with audio) and MORE(Ethanol Producer Magazine) and MORE(Ethanol Producer Magazine/Growth Energy) and MORE(Brownfield Ag News)