Issue Date: August 11, 2008
EPA Denies Waiver On Renewable Fuels
EPA last week reaffirmed the federal standard mandating the amount of ethanol or other renewable fuels in gasoline and diesel sold in the U.S. The agency rejected a request from Texas to waive the standard for renewable fuel standards in 2008, citing increased food prices because of the amount of corn being diverted to ethanol production. Midwestern Corn Belt states and the Renewable Fuels Association opposed a waiver. EPA Administrator Stephen L. Johnson says he turned down the Texas request because the renewable fuel standard "is not causing severe economic harm." Waiving the standard, he says, would cut corn prices only by an estimated 7 cents per bushel. Johnson says the standard is "strengthening the nation's energy security and supply and supporting America's farming communities." Congress required an increase in the amount of renewable fuels in the nation's gasoline and diesel supply as part of the 2007 Energy Independence & Security Act. The law calls for 9 billion gal of ethanol to be produced this year from corn and cellulose, growing to 36 billion gal by 2022.
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