US seeks comment on Texas ethanol waiver plea

16 May 2008 22:40  [Source: ICIS news]

WASHINGTON (ICIS news)--US environmental officials on Friday invited public comment on the request by Texas Governor Rick Perry for a cutback in the new ethanol mandate that Perry said is causing his state economic harm.

 

In a 25 April letter to the Environmental Protection Agency (EPA), Perry charged that the new 36bn gal/year biofuels mandate set by Congress in a December 2007 energy bill is causing “skyrocketing” price increases in Texas for corn, other grains and derivative consumer foods and livestock feed.

 

As provided under the 2007 Energy Independence and Security Act (EISA) and an earlier federal energy bill, the EPA may waive the ethanol consumption requirement - known as the renewable fuels standard (RFS) - if it causes severe economic harm to a state or region of the country.

 

Perry, a Republican, is seeking a 50% cut in the ethanol mandate for this year and beyond.

 

Under EISA, the US is to produce and consume 9bn gallons of ethanol this year. Consumption levels would increase annually to 36bn by 2022.

 

US bio-ethanol production last year was about 7bn gallons, all of it based on corn feedstock.

 

If the EPA were to grant Perry’s request for a 50% cutback, that action would apply nation wide and would lower this year’s ethanol mandate to only 4.5bn gallons, well below current production levels of corn ethanol.

 

The agency is accepting public comment on the Texas waiver request. The comment period is open for 30 days or until approximately 16 June. The exact date of the comment deadline depends on the publication date of the EPA comment notice in the Federal Register.

 

 Complete details on the Texas waiver and EPA’s response are available on the agency’s Web site.

 

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By: Joe Kamalick
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