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

LegislationUSDA: Quick Implementation Of Disaster Assistance Programs A ‘Top Priority’
July 9, 2014
USDA has processed 106,000 payments to farmers in 40 states across the country who suffered livestock and grazing losses between Oct. 2011 and passage of the 2014 Farm Bill. Read More
LegislationTFI Praises White House For Signing WRRDA Into Law
June 11, 2014
The bill streamlines U.S. Army Corps of Engineers projects, prioritizes authorized waterway improvements and provides needed adjustments to the Inland Waterways Trust Fund. Read More
Allied Cooperative Grain Plant
ManagementAllied Cooperative, Arcadia Co-op Plan Merger
June 10, 2014
The Board of Directors of Allied Cooperative and Arcadia Co-op recently signed a letter of intent for a merger between the two cooperatives. Read More
EmployeesSyngenta: ‘Take Charge’ Of Farm Safety
June 4, 2014
Syngenta and health officials warn of four health-related challenges in agriculture and how they can be managed. Read More

Trending Articles

EquipmentSummer Show Preview 2014: Superior Sprayers Take The Field
July 3, 2014
In this final installment of our coverage of the major categories of Big IRON that retailers can expect to test-drive at this summer’s events, here is a look at 19 sprayers. Read More
Scouting a soybean patch at Green Valley Ag.
EmployeesCropLife Compensation Survey: Battling Talent Drain
July 2, 2014
Retailers too often lose employees to companies outside of agriculture, while recruiting efforts are most often limited to competitors and other ag-focused organizations. Read More
HerbicidesDow AgroSciences Introduces SureStart II Herbicide
June 16, 2014
The enhanced formulation has improved viscosity and increased stability under heat and controls more than 60 high-anxiety grasses and broadleaf weeds found in corn fields. Read More
HerbicidesBASF Investing $270 Million To Expand U.S. Herbicide Production
June 11, 2014
BASF has invested more than $270 million to expand herbicide production capacities in the U.S., including more than 20 new products to be launched over next two years. Read More
EquipmentGPS: 25 Years And Still Growing
June 2, 2014
The evolution of global positioning systems applications in agriculture remains ongoing as the technology hits a notable milestone. Read More
CropLife 10013 Key Acquisitions Pinnacle Has Made In The First Half Of 2014
May 29, 2014
The only thing that has reached a more frenzied pace than #plant14 might be the multiple acquisitions that Pinnacle Agriculture Holdings has made in the first half of the year. Read More

Latest News

EquipmentPrecisionAg.com Relaunches With Responsive Design For M…
July 22, 2014
PrecisionAg, the worldwide leader in precision agriculture information and analysis, announces the launch of its completely redesigned website, PrecisionAg.com. Read More
FungicidesEPA OKs Two Willowood Fungicides
July 21, 2014
The EPA has approved Willowood Azoxy 2SC and Willowood AzoxyProp Xtra. two widely used broad spectrum, preventative fungicides with systemic and curative properties. Read More
Precision AgFarmers Learning Fast As UAVs Take Off
July 17, 2014
Farmers and others interested in how UAVs can be used in agricultural applications were able to learn more about the technology during the recent Precision Aerial Ag Show. Read More
CropLife 100Bobby Knight, Richard Petty To Highlight Ag PhD Field D…
July 17, 2014
Attendees at the July 24 Ag PhD Field Day at Hefty Farms will learn about the latest agricultural technologies, and get a chance to meet legendary sports figures Bobby Knight and Richard Petty. Read More
WebinarsUpcoming Webinars
July 17, 2014
Register for one of our upcoming Webinars or access our archive of past Webinars to view recordings of presentations that may be of interest to you. Read More
A finished Willmar 16-ton side-shooting tender.
TendersNew Production Facility Helps Willmar
July 17, 2014
In 1963, a group of businessmen started Willmar. Today, a half-century later, the company is one of the ag industry’s longest-running brands. Read More
FertilizerCF Industries Sells Carbon Credits To Chevrolet, Donate…
July 17, 2014
CF Industries has completed the sale of a large block of carbon reduction credits to Chevrolet, and will donate the net proceeds of $600,000 to the National FFA Foundation. Read More
CropLife 100Grainland Cooperative, Minier Cooperative Grain To Merg…
July 17, 2014
The shareholders of Grainland Cooperative and Minier Cooperative Grain Co. approved a merger of company operations effective August 1, 2014. Read More
ManagementStudy: Drought Costing California Billions
July 17, 2014
A new study has found the drought has cost the state $2.2 billion, primarily in lost farm revenue and wages. Read More
FertilizerCF Industries Resumes Production At Oklahoma Nitrogen C…
July 17, 2014
The company had shut down production at the Woodward, OK, facility in April to address an issue in one of the site’s boilers. Read More
CropLife 100Wilbur-Ellis To Relocate Agribusiness Division To Denve…
July 16, 2014
The move Eastward will allow Wilbur-Ellis’ Agribusiness Division to be more accessible to relevant geographies and is expected to enhance communication and collaboration among the division’s nearly 3,000 employees. Read More
Soybean field
FungicidesValent Launches New Seed Protection Fungicide For Soybe…
July 16, 2014
The INTEGO SUITE System contains the first new, novel seed protection fungicide chemistry registered in 30 years by the EPA for protection against Pythium and Phytophthora. Read More
Crop InputsSyngenta Drive To Thrive 10 Finalists Announced
July 15, 2014
Finalists are chosen based on the quality of their essays and photos depicting what makes them thrive. Read More
FertilizerHow To Minimize Phosphorus Losses In Runoff
July 15, 2014
Phosphorus losses from agricultural fields can be divided into three categories: flash losses of soluble phosphorus, slow leak losses and erosion events. Here's how to minimize losses in each instance. Read More
ManagementCalifornia Drought Threatens To Dry Up Farm Wells
July 15, 2014
Farmers hit hardest by California's drought could begin to see wells run dry next year, according to a new study by The Center for Watershed Sciences at the University of California, Davis. Read More
Precision AgPoll: Do you plan to attend this year’s InfoAg Co…
July 14, 2014
This year’s InfoAg Conference is just two weeks away. The premier event in precision agriculture takes place July 29-31 at Read More
LegislationFarm Bill Implementation Continues
July 14, 2014
The bill provides $28 billion over the next five years for conservation on private lands while streamlining several old programs and creating new ones like the Regional Conservation Partnership Program. Read More
MicronutrientsH.J. Baker Continues Expansion Of Atmore Facility
July 14, 2014
The company has improved its molten sulphur unloading system to help meet increased sulphur demand at Tiger-Sul’s Atmore, AL, facility. Read More