A THREAT TO RURAL AMERICA
Overview of EPA Proposed Rule
POET BIOREFINING
▪ One of the world’s largest ethanol producers
▪ Other products include animal feed and corn oil
▪ Leading the industry in cellulosic production
▪ Provides jobs
▪ Increases tax revenue
▪ Supports local economies
▪ Provide cleaner, affordable alternative to fossil fuels
▪ Reduce dependence on foreign oil
▪ Revitalize global agriculture
LOCAL IMPACT
▪ POET Biorefining- Corning
+ 41 jobs
+ 66 million gallons of ethanol produced
+ 190,000 tons of DDGs sold
+ $492,843 taxes paid
+ 22 million bushels of corn purchased
COMMUNITY SUPPORT
▪ Adams Co Aquatic Center
▪ Adams Co Conservation
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Foundation
ACEDC
Adams County Chamber of
Commerce
Corning Schools
SW Valley Schools
Corning Opera House
Johnny Carson House
Corning Sports Boosters
▪ Corning Holiday Lights
▪
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▪
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▪
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Project
FFA
4-H
Adams Co Sheriff’s Office
K-9 Fund
Corning Fire Department
Adams Co Emergency
Mgmt
Adams Co Rescue Service
Adams Co Speedway
WHY ETHANOL?
▪ RFS created in 2007 and regulated by the
Environmental Protection Agency (EPA)
▪ Created a requirement that oil blend ethanol into
their fuel supply each year through 2022
▪ Intent of the RFS:
+ Reduce greenhouse gas emissions
+ Decrease dependence on foreign oil
+ Lower price at the pump
BENEFITS
▪ More than 400,000 US jobs.
(An additional 136,000 jobs
would be created by moving
to E15)
▪ Grain ethanol has 59%
fewer greenhouse gas
emissions compared to
conventional gasoline
▪ In 2011, ethanol reduced
wholesale gasoline prices
by an average of $1.09 per
gallon
2014 RVO PROPOSED RULE
▪ In November, EPA drastically cut the required volumes of corn
ethanol for 2014
▪ RVO reduced corn ethanol from 13.8 billion gallons down to
13.01 billion gallons for 2014
▪ This is the first year they have proposed cutting the volumes.
Why? Because the oil industry has not made infrastructure
investments to comply with the law.
▪ Public comments can be submitted during 60-day period
EPA MAKES BIG OIL PROFITS A PRIORITY
"In 2007, when the RFS was created, the homework assignment
given to the ethanol industry was to create clean fuel and make
those gallons available for purchase.
Oil was responsible to make sure those gallons are delivered to
consumers. At no point was it indicated that the ethanol industry
was responsible to develop the infrastructure and distribution
network.
Any work we have done in this area to help big oil meet its
obligation has been extra credit. So despite doing an A+ job while
oil is getting an F, we are the ones being penalized by the
proposal.”
-Jeff Broin, Executive Chairman
A CHINK IN THE ARMOR
A quote from Bob Greco, Downstream
Director at the American Petroleum
Institute…..
“EPA’s plan represents a step in the right
direction, but doesn’t go far enough. We
will continue to call on Congress to
repeal the RFS….”
Senators Could Dethrone King Corn in Ethanol Standards
National Journal | By: Clare Foran | Published: December 11, 2013 | Return to List

FILED IN

RFS HEARING RECAP

SENATE ENVIRONMENT &; PUBLIC WORKS COMMITTEE
Senators are working on separate bills to aggressively reduce the amount of corn-based ethanol required under the
renewable-fuel standard.
Sen. Ben Cardin, D-Md., and Senate Environment and Public Works Committee ranking member David Vitter, R-La.,
touted legislation they have been working on together to amend the mandate, which requires blenders to mix ethanol
with gasoline, during a joint hearing held Wednesday by the committee and its Clean Air and Nuclear Safety
Subcommittee.
Neither senator spelled out the details of the bill, which has not yet been formally introduced, but Cardin emphasized
that it would drawdown the corn-based ethanol portion of the mandate while protecting the quotas for advanced
biofuels.
"[The RFS] needs to be better balanced for energy security, food security, and motor safety. There are more efficient
renewable-energy sources in the advanced biofuels, and that's what we should be focusing our attention [on]," Cardin
said, adding that he and Vitter are looking for ways to "make aggressive reductions on the volume mandates for cornbased ethanol."
POTENTIAL HARM TO INDUSTRY
 Reduced volumes would be damaging to agriculture and
biofuels industries
 More than a 500M bushel drop in corn demand
 $.80 - $1.00 drop in corn prices/bushel (Deutsche
Bank)
 Higher prices at the pump
 Higher demand for foreign oil
 Reduced incentive for higher blends and
infrastructure
 Loss in multi-billion dollar investments in nextgeneration biofuels
POTENTIAL HARM TO RURAL AMERICA
 Continued reduced volumes would be damaging to Rural
America:
 Reduced sales = reduced ability to support charities
and community projects
 Fewer jobs for the community
 Less taxes paid
 Loss of expansion opportunities including cellulosic
 Closure of plants
WHAT CAN YOU DO?
▪ Submit comments: By law, EPA is required to read every
comment.
▪ Spread the word: Ask your friends, family, and co-workers to
submit comments.
▪ Engage leaders: Request local chambers, economic
development, and civic groups to engage their members.
▪ Join POET leadership for a meeting with your local newspaper’s
editorial board in January.
THANK YOU