Derrick Morgan: President Trump Should Remember Promises Made To Refinery Workers

SVP of AFPM Wants To See An End To Ethanol Mandates

The Rich Zeoli Show
July 11, 2019 - 12:59 pm

Scott Olson / Staff

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1210WPHT (Philadelphia)-A government regulation called the ethanol mandate continues to harm our vehicles and even jobs within the nation and right here in Pennsylvania.

Derrick Morgan, Senior Vice President of American Fuel and Petrochemical Manufacturers, joined discussing the ethanol mandate how the focus is on protecting small refiners (75,000 barrels of oil or less)

“It’s kind of a typical well-intentioned policy from 15-years ago and our lawmakers aren’t clairvoyant, so it’s really out of date. What we’re focused on right now, the President just signed this E-15 order that allows higher blends of ethanol, which you and I both have concerns with. Right now, we’re fighting for small refineries. They have an exemption under the program and right now some of the folks in the agriculture community and ethanol community are trying to keep small refiners from having protection.”

Morgan went on to explain to Zeoli that part of the mandate increases cost on refiners by forcing them to purchase credits to comply with the program, despite the biofuel already intended to be made.

 “All these refiners are suffering from the Renewable Fuel Standard (RFS) . The problem with it is, at the end of the year, our guys have to pay for a compliance mechanism called a RIN and it doesn’t produce anything it just shows  that we blended biofuels.  A lot of these biofuels they would blend anyway but it just ends up costing our guys more than anything else other than crude oil and paying their employees. “

The ultimate goal should be zero ethanol fuels, according to Morgan. It’ would be simply better for cars. However, because of lobbyists the mandate hasn’t changed since it began

“You know what, Ronald Regan said ‘there’s not as permanent as a temporary government program’ and you have a very powerful lobby that [is] located in a very strategic state of Iowa. Unfortunately,   President [Trump] , I think,  made some promises to them . And we’re telling them ‘look, you made some promises to Iowa farmers but you also made promises to Pennsylvania refinery workers and manufacturing workers.’ So, let’s not go too far in the direction of the corn and ethanol interests and hurt refiners unnecessarily.”