ChimpCo Delivers Answer To Rick Perry's Request For Corn Ethanol Waiver - "No" - ENS

[hatrack]

WASHINGTON DC, August 7, 2008 (ENS) - The Bush administration today denied a request by Texas to cut the U.S. biofuels mandate in half, rejecting the claim that the massive increase in corn-based ethanol is causing economic harm to the state's livestock industry and raising food prices.

Few stakeholders were surprised by the decision, but debate over the U.S. biofuels mandate reflects lingering concern about the economic and environmental impact of nation's ethanol boom.

The controversy centers on the nation's renewable fuels standard, RFS, which calls for the nation to increase its production of ethanol and other biofuels to be blended into gasoline. Such fuels account for some six percent of the nation's gasoline supplies. The RFS requires nine billion gallons of biofuels be used this year, with the target set to jump to 11 billion gallons in 2009 and 36 billion gallons by 2020.

EDIT

The Texas governor blasted the decision, saying the EPA appears incapable of looking past the "good intentions" of the policy. "For the EPA to assert that this federal mandate is not affecting food prices not only goes against common sense, but every American's grocery bill," Perry said. "Any government mandate that artificially props up a single industry to the detriment of millions of Americans is bad public policy."

EDIT

http://www.ens-newswire.com/ens/aug2008/2008-08-07-10.asp