17 June 2008 21:06 [Source: ICIS news]
Perry is seeking a 50% waiver on the implementation of the Renewable Fuels Standard (RFS), which mandates that 9bn gal of renewable fuels be blended in US motor fuel this year.
The request came amid growing speculation that
Perry filed for the waiver in a bid to ease pressure on grain prices, but the Renewable Fuels Association (RFA), which represents the
“Gasoline prices will likely increase by 30% if 4.5bn gal of ethanol were to be eliminated from the market place,” said RFA president Bob Dinneen during an industry event in
While the elimination of ethanol could benefit
Dinneen said Perry was ignoring the findings of a study he had himself commissioned at the
“The study found that relaxing the RFS would not result in significantly lower corn prices,” Dinneen said.
The RFA also claims that the A&M report stated that “the underlying force driving changes in the agricultural industry, along with the economy as a whole, is overall higher energy costs, evidenced by $100/bbl”.
The governor seems to have decided not to take that into account, Dinneen said during a presentation at the 2008 Fuel Ethanol Workshop & Expo.
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