EPA denies Texas request to cut federally-required ethanol use
Nebraska and national ethanol advocates cheered the U.S. Environmental Protection Agency’s denial of a request from Texas to reduce federal requirements to use ethanol in gasoline in hopes of bringing down corn prices.
Texas Gov. Rick Perry’s wanted EPA to waive the Renewable Fuels Standard, which requires 9 billion gallons of ethanol to be blended into gasoline from Sept. 1 to Aug. 31, 2009. That number will rise by law to 11 billion gallons next year.
Texas poultry and livestock interests claimed the new federal biofuels policy was driving corn prices too high, so Perry’s request called for a national rollback of the RFS to one half of current domestic biofuel use.
Between January and June, cattle feeders nationwide lost $1.5 billion because of high corn prices, officials said.
Nebraska Ethanol Board administrator Todd Sneller applauded the EPA’s decision.
“It was clear from the outset that the waiver request could not meet the legal test required, and that renewable fuels like ethanol are actually benefiting the economy by lowering fuel prices and stimulating economic activity,” Sneller said.
In its decision, the EPA found that waiving the RFS would reduce corn prices by as little as 7 cents per bushel, Sneller said. Corn is now bringing $5 a bushel on the Chicago Board of Trade.
Coincidentally, the Consumer Federation of America submitted a report to the EPA which found that rolling back the RFS would significantly raise gas and oil prices, according to Sneller.
Texas Gov. Rick Perry called the decision “a mistake” and “bad public policy.”
EPA Administrator Stephen Johnson, in a conference call with reporters, said the agency's assessment looked at the livestock issue and found feed prices have increased because of biofuel production.
``However, is that the result of the (Renewable Fuels Standard) mandate? Our conclusion is no,'' Johnson said. ``And second, are those price increases meeting the statutory requirement of severe harm to the economy? And our conclusion is no.''
More than four dozen House Republicans and two dozen GOP senators, including presidential candidate John McCain, wrote EPA in support of a waiver. The state of Connecticut also supported Texas' request
Environmental groups, concerned about how biofuels affect climate, water quality and biodiversity, also supported the waiver.
Perry came under fire early in July after it was reported that he filed his waiver request shortly after a prominent poultry producer donated $100,000 to the Republican Governors Association, which he chaired.
Lonne ``Bo'' Pilgrim, co-founder of Pilgrim's Pride Corp., the nation's largest chicken producer, made the contribution in March. Perry filed his waiver request in late April.
The National Chicken Council, which represents the nation's chicken producers, processors and marketers, said estimates higher feedgrain prices have cost companies in the broiler chicken industry more than $6 billion since October 2006.
Texas Gov. Rick Perry’s wanted EPA to waive the Renewable Fuels Standard, which requires 9 billion gallons of ethanol to be blended into gasoline from Sept. 1 to Aug. 31, 2009. That number will rise by law to 11 billion gallons next year.
Texas poultry and livestock interests claimed the new federal biofuels policy was driving corn prices too high, so Perry’s request called for a national rollback of the RFS to one half of current domestic biofuel use.
Between January and June, cattle feeders nationwide lost $1.5 billion because of high corn prices, officials said.
Nebraska Ethanol Board administrator Todd Sneller applauded the EPA’s decision.
“It was clear from the outset that the waiver request could not meet the legal test required, and that renewable fuels like ethanol are actually benefiting the economy by lowering fuel prices and stimulating economic activity,” Sneller said.
In its decision, the EPA found that waiving the RFS would reduce corn prices by as little as 7 cents per bushel, Sneller said. Corn is now bringing $5 a bushel on the Chicago Board of Trade.
Coincidentally, the Consumer Federation of America submitted a report to the EPA which found that rolling back the RFS would significantly raise gas and oil prices, according to Sneller.
Texas Gov. Rick Perry called the decision “a mistake” and “bad public policy.”
EPA Administrator Stephen Johnson, in a conference call with reporters, said the agency's assessment looked at the livestock issue and found feed prices have increased because of biofuel production.
``However, is that the result of the (Renewable Fuels Standard) mandate? Our conclusion is no,'' Johnson said. ``And second, are those price increases meeting the statutory requirement of severe harm to the economy? And our conclusion is no.''
More than four dozen House Republicans and two dozen GOP senators, including presidential candidate John McCain, wrote EPA in support of a waiver. The state of Connecticut also supported Texas' request
Environmental groups, concerned about how biofuels affect climate, water quality and biodiversity, also supported the waiver.
Perry came under fire early in July after it was reported that he filed his waiver request shortly after a prominent poultry producer donated $100,000 to the Republican Governors Association, which he chaired.
Lonne ``Bo'' Pilgrim, co-founder of Pilgrim's Pride Corp., the nation's largest chicken producer, made the contribution in March. Perry filed his waiver request in late April.
The National Chicken Council, which represents the nation's chicken producers, processors and marketers, said estimates higher feedgrain prices have cost companies in the broiler chicken industry more than $6 billion since October 2006.
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