USDA Secretary Sonny Perdue delivered a strong rejection of EPA's claim small refinery exemptions (SREs) are having "zero impact" on corn ethanol producers. "I would refute the comment" as "[there is a] negative impact" on ethanol production from the waivers, Perdue told IEG Policy in a Virginia appearance.
EPA "likes to point to export totals of ethanol production, which is good and healthy" to argue the waivers are not hurting ethanol producers, he noted. While welcoming ethanol exports, Perdue stated, "the demand destruction over domestic usage has been affected by the small refinery waivers."
Perdue pointed out that with a 15 billion gallon mandate for conventional ethanol, “every time you issue a waiver, you decrease that [obligation], which decreases corn use, and that decreases ethanol capacity for the American producer.” Perdue cited a need to boost the infrastructure for E15 fuel as one way to help offset the small refiner exemptions.
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