EPA Rejects Ethanol Waiver Request

EPA denied a request by Texas Gov. Rick Perry to waive 50 percent of the 9-billion-gallon Renewable Fuel Standard (RFS) on Aug. 7. The first-of-its-kind waiver request was seen as a critical test of RFS, which calls for rising ethanol quotas in coming years and is central to an effort by the Bush administration to reduce the nation’s dependence on foreign oil.

That program has come under fire in recent months as corn prices have hit new peaks and global concerns have increased about the wisdom of using food to make a transportation fuel, as well as the environmental impacts of doing so.

  • Texas Gov. Perry’s reaction

Texas Gov. Rick Perry vowed to stand buy livestock producers in his state after EPA denied a request to waive 50 percent of the 9-billion-gallon Renewable Fuel Standard on Aug. 7, the Houston Chronicle reports.

"After the ruling, Perry fired back at regulators he said don’t fully appreciate the devastating impact high corn prices have had on the state’s pork, poultry, beef, and other livestock industries," according to theChronicle.

In a telephone interview with the newspaper, Perry said that "’the idea that they have some bureaucratic definition that constitutes severe economic harm is really nonsense to me. They need to look at reality. We got people that are hurting.

“’I think this is the early stages of the destruction of the Texas livestock industry,” he said. The first-of-its-kind waiver request was seen as a critical test of the Renewable Fuel Standard, which calls for rising ethanol quotas in coming years and is central to an effort by the Bush administration to reduce the nation’s dependence on foreign oil.

That program has come under fire in recent months as corn prices have hit new peaks and global concerns have increased about the wisdom of using food to make a transportation fuel, as well as the environmental impacts of doing so.

  • Reaction from the Ethanol Promotion and Information Council (EPIC)

The Ethanol Promotion and Information Council (EPIC) was pleased with EPA’s decision. In a press release, EPIC stated that the decision ensures that consumers will continue to benefit from an expanding supply of domestically produced renewable fuel, which is helping to lower gas prices.

Those savings at the pump are considerable — as much as $500 per year for the average family, according to estimates by Merrill Lynch, Iowa State University, and others.

“Today’s decision is an important win for American consumers,” said EPIC Executive Director Toni Nuernberg. “People are justifiably focused on pocketbook concerns in today’s economy. Ethanol is one of the few things helping families save money.”

  • DTN commentary on EPA’s next steps

DTN Refined Fuels Editor Brian Milne says EPA is obligated to review ethanol market conditions in December. Then EPA will work with the U.S. Department of Energy and USDA to identify expected demand for transportation fuels in the upcoming year.

Milne says the federal government would then assign the annual RFS commitment that dictates the Renewable Volume Obligation for each refiner, importer, and in some cases, gasoline blenders.

It will be USDA’s role to decide whether there would be enough feedstock to support the annual RFS. In the Aug. 7 decision against the Texas waiver request, EPA Administrator Stephen L. Johnson said that EPA found that there will be adequate feedstocks available to meet the 9-billion-gallon RFS for 2008.

Topics:

Leave a Reply

Management Stories

ManagementReviewing MAGIE 2015
September 2, 2015
CropLife Editor Eric Sfiligoj talks what he saw at the recent Midwest AG Industries Exposition (MAGIE) show. Read More
StewardshipBee Buffer Strip Initiative Seeks 100 Ohio Farmers
August 31, 2015
The U.S. Bee Buffer Project, an initiative of the Pollinator Partnership (P2), Burt’s Bees and The Burt’s Bees Greater Good Read More
CPS Morenci receiving its 4R certification
StewardshipCPS Morenci Becomes First Michigan Facility Certified In 4R Nutrient Stewardship
August 31, 2015
The 4R Nutrient Stewardship Certification Program has announced that Crop Production Services, Inc.’s facility located in Morenci, MI, has been Read More
ManagementConsolidation hits and a miss; And a look at China’s challenges
August 28, 2015
As Monsanto suspends its pursuit of Syngenta, consolidation news at the retail and distribution level heats up. CropLife magazine’s Executive Read More
Top 100 Articles
Crop InputsLand ‘O Lakes, United Suppliers Finalize Merger
August 24, 2015
According to a press release on August 24, owners of United Suppliers, Inc. and members of Land O’Lakes, Inc. “have Read More
West Central Cooperative, Jefferson, IA
CropLife 100Iowa Cooperatives To Explore Unification
August 19, 2015
The boards of directors at two of Iowa’s leading farmer-owned cooperatives yesterday signed a letter of intent to study the Read More
CropLife 100Southern States Coop Hosting Drone Flight This Friday
August 3, 2015
Southern States Cooperative — No. 9 on the CropLife 100 — is hosting an FAA-approved drone demonstration at Grandview Farms Read More
CropLife 100Aligned Ag Distributors Adds Four New Owners
July 30, 2015
Aligned Ag Distributors LLC has announced the addition of four new customer/owners to Franklin Holding Co. LLC. They are: The Read More
CropLife 100Pinnacle Purchases California-Based Specialty Crops Retailer
July 20, 2015
Pinnacle Agriculture Holdings has successfully acquired California-based NH3 Service Co.  Operating as part of Pinnacle’s Performance Agriculture brand, the new locations Read More
Asmus Farm Supply liquid fertilizer facility features 20,000 square feet
CropLife 100Slideshow: Asmus Farm Supply Shows Off Its New Liquid Fertilizer Facility
July 15, 2015
Asmus Farm Supply, Rake, IA, recently added a new liquid fertilizer facility to its company operations. The new liquid fertilizer Read More
Latest News
ManagementReviewing MAGIE 2015
September 2, 2015
CropLife Editor Eric Sfiligoj talks what he saw at the recent Midwest AG Industries Exposition (MAGIE) show. Read More
Melissa Olds Dow AgroSciences
Crop InputsDow AgroSciences: Highlighting The Past, Present & …
September 2, 2015
In general, media events held by large agricultural suppliers tend to focus primarily on what plans the company has in Read More
Mobile tablet
OpinionTaking Data Head On
September 2, 2015
As you read this column, I’m hoping that if you picked up the phone and gave me a call, you’d Read More
Young soybean field
Industry NewsArysta LifeScience Announces New Business Unit Head For…
September 1, 2015
Arysta LifeScience North America announces the addition of Rico Christensen, Business Unit Head, North America. Christensen will have responsibility for Read More
Wilbur Ellis Pink Soybean Seed Treatment
Crop InputsWilbur-Ellis Goes Pink With Soybean Seed Treatments For…
September 1, 2015
This past year, proceeds of pink-dyed soybeans treated and sold to Wilbur-Ellis seed customers in Chester, SD, went to two Read More
SprayersNORAC Active Wing Roll Slated For More Sprayers
September 1, 2015
NORAC Systems, a member of the Topcon Positioning Group, announces the release of Active Wing Roll for RoGator, Apache, New Read More
Syngenta Sign
FungicidesSyngenta’s Newest Fungicide Receives EPA Approval
September 1, 2015
Syngenta announced today that its newest succinate dehydrogenase inhibitor (SDHI) fungicide – Solatenol – has received registration from EPA and Read More
Flooded corn in Indiana
Crop InputsDelaying The Fertilizer Decision
September 1, 2015
Comments gathered from several retailers recently evidenced a classic good-news-bad-news scenario. Good news is prices and supplies of nitrogen, phosphate, Read More
StewardshipBee Buffer Strip Initiative Seeks 100 Ohio Farmers
August 31, 2015
The U.S. Bee Buffer Project, an initiative of the Pollinator Partnership (P2), Burt’s Bees and The Burt’s Bees Greater Good Read More
2015 ShowStopper Award, MAGIE
EquipmentA ShowStopper From Case IH: The Patriot 2250
August 31, 2015
For nine years now, visitors to the yearly Midwest AG Industries Exposition (MAGIE) show have been tasked with not only Read More
Crop InputsMonsanto, FMC Expand Roundup Ready PLUS Platform
August 31, 2015
FMC Corp. and Monsanto Co. announced today an expanded agreement to continue their participation in the Roundup Ready PLUS Crop Read More
Deere Nutrient Applicator
Eric SfiligojThe Good & Bad News From MAGIE
August 31, 2015
As I write this column, I’ve just returned from the annual Midwest AG Industries (MAGIE) trade show in Bloomington, IL. Read More
CPS Morenci receiving its 4R certification
StewardshipCPS Morenci Becomes First Michigan Facility Certified I…
August 31, 2015
The 4R Nutrient Stewardship Certification Program has announced that Crop Production Services, Inc.’s facility located in Morenci, MI, has been Read More
EquipmentDeere Announces Soucy Track Distribution Alliance
August 28, 2015
John Deere announces an alliance with Soucy Track to sell and distribute products through the John Deere dealer channel. “This Read More
FertilizerFall-Applied Phosphorus: A Rooted Investment
August 28, 2015
As commodity prices decrease and input prices continue to rise, farmers are seeking more efficient strategies for meeting a high Read More
Monsanto Sign
Crop InputsWhat’s Next For Monsanto, Syngenta?
August 28, 2015
After dropping its $47 billion bid to take over Swiss agribusiness firm Syngenta, Monsanto may be turning its focus to Read More
Golden Harvest Corn stalks
Crop InputsMonsanto: Syngenta Not The Only Horse In Crop Protectio…
August 28, 2015
Monsanto Co, having ditched an audacious $46 billion (£30 billion) offer for Syngenta AG, may downshift to a humbler strategy Read More
ManagementConsolidation hits and a miss; And a look at China’s ch…
August 28, 2015
As Monsanto suspends its pursuit of Syngenta, consolidation news at the retail and distribution level heats up. CropLife magazine’s Executive Read More