EPA Denies Texas Request for Ethanol Waiver

Following an analysis that included reviewing 15,000 public comments, U.S. Environmental Protection Agency (EPA) Administrator Stephen L. Johnson today announced his decision to deny a request submitted by the State of Texas to reduce the nationwide Renewable Fuels Standard (RFS). As a result, the required total volume of renewable fuels, such as ethanol and biodiesel, mandated by law to be blended into the fuel supply will remain at 9 billion gallons in 2008 and 11.1 billion gallons in 2009.

The renewable fuel program was adopted in the Energy Policy Act of 2005, and was recently expanded in the Energy and Independence Security Act of 2007. This program requires gasoline to contain a specified volume of renewable fuel. The Governor of the State of Texas requested a fifty percent waiver of the national volume requirements for the renewable fuel standard (RFS or RFS mandate) on April 25, 2008.

Administrator Johnson said:

“After reviewing the facts, it was clear this request did not meet the criteria in the law. The RFS remains an important tool in our ongoing efforts to reduce America’s greenhouse gas emissions and lessen our dependence on foreign oil, in aggressive yet practical ways.”

Current law authorizes EPA to waive the national RFS if the agency determines that the mandated biofuel volumes would cause “severe harm” to the economy or the environment. The agency recognizes that high commodity prices are having economic impacts, but EPA’s extensive analysis of Texas’ request found no compelling evidence that the RFS mandate is causing severe economic harm during the time period specified by Texas.

Representatives from the food and grocery industry were disappointed with the EPAs decision as they have had to sharply increase the prices of their products which has resulted in a drop-off in sales.

“We are deeply disappointed that EPA has failed to recognize the very clear signs that the food-to-fuel policy is causing severe harm to the economy,” said George Watts, president of the National Chicken Council.

Other posts about biofuels and the EPA

Photo: swanksalot via flickr under a Creative Commons License

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