Agriculture Secretary Sonny Perdue celebrated his first year in office by testifying at a Senate hearing on the rural economy on Tuesday, where he said he would defend the ethanol mandate. “We are very concerned about the waivers” that EPA has granted to some refiners from having to comply with the Renewable Fuel Standard,” said Perdue. “We believe that is adequate compensation for the RIN prices.”
In the past, the waivers were reserved for financially strapped small-volume refineries with high costs to buy so-called RINs, essentially credits, when they did not blend enough ethanol into gasoline. Ethanol advocates say the EPA privately granted so many waivers that it effectively reduced the ethanol mandate by 1 billion gallons in 2017. Iowa Sen Joni Ernst said the waivers “destroy our demand for biofuels” and would “ultimately kill the RFS.”
“I have no statutory hammer,” said Perdue, because the EPA is in charge of the biofuels mandate. But he said he would lobby the EPA and the White House in support of the RFS. “The president will probably make that call,” he said, about the Corn Belt goal of year-round sale of E15, a richer blend of ethanol into gasoline than the traditional 10 percent rate.
In a tweet, Perdue recalled, “One year ago this evening, the Senate confirmed me as Secretary of Agriculture, with my cousin @sendavidperdue presiding that night. Best part so far is meeting the people of American agriculture (35 states visited to date). Much accomplished, more to do & many challenges ahead.”
Members of the Agriculture Committee applauded as chairman Pat Roberts noted the anniversary and said, “Happy one-year anniversary, Mr. Secretary.” A former two-term governor of Georgia, the affable Perdue is popular among lawmakers.