Senator Ted Cruz (R-Texas) and a small group of oil refiners are attempting to dismantle the Renewable Fuel Standard (RFS) through multiple "reforms" that would have severe negative consequences for the ethanol industry, farmers, and rural America – all while lining the pockets of a select few oil interests.
Senator Cruz is pushing a bait-and-switch deal that would require EPA to issue paper "credits" that will allow refiners to evade their legal obligation to blend biofuels. This scheme would mean that oil refiners would have the luxury of opting out of the RFS, completely defeating the purpose of the program. Instead of blending biofuels to achieve compliance, refiners could simply purchase cheap, artificially deflated RINs from the EPA.
Oil interests have also proposed an ethanol export subsidy scheme where RINs would be attached to exported gallons of ethanol. This would result in the global community closing off their markets to U.S. ethanol and inhibiting our ability to sell biofuels overseas, causing $27.9 billion in corn losses, immediate 56 cents per bushel drop in corn price, and a reduction of 25,000 jobs supported by ethanol exports.
If the Administration adopts either or both of these proposals, they would:
- Ensure that oil refiners have no incentive to blend ethanol, harming ethanol producers across the United States
- Decimate corn prices and jeopardize the farmers of rural America
- Replace cleaner, renewable biofuels with more gallons of dirty, foreign oil
- Cap the ethanol market at 10 percent, killing off potential growth for renewable fuels
- Severely restrict the ability of U.S. biofuel producers to export ethanol
150 biofuel plant managers came together and sent a letter to President Trump urging him to reject Senator Cruz’s proposals and pursue a path that’s a win for agriculture, the biofuels industry, and blue-collar workers. We need you to add your voice and tell your elected officials and the EPA that these unacceptable reforms will have a profound negative impact on rural America.