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

ManagementTrip Report, PSM R.I.P, and Ag’s Reaction to Federal Budget
May 25, 2017
Editors Paul Schrimpf and Eric Sfiligoj talk about their recent travels, the end for Process Safety Management (PSM), and how Read More
Corn soil
LegislationARA Member Testifies Before Senate Ag Committee
May 25, 2017
Agricultural retailers stand on the front-lines of the American economy. As trusted advisors to America’s farmers, ag retailers are uniquely Read More
ManagementFarm Market iD’s Agriculture Database Now Covers More Than One Billion Acres
May 25, 2017
Farm Market iD, farmmarketid.com, has announced the release of its 2017 Annual Update of its farm and land database. The Read More
ManagementPrecision Planting Deal, China Developments, and Environmental Respect
May 18, 2017
Editors Eric Sfiligoj and Dan Jacobs discuss the latest news on John Deere’s now dead deal for Precision Planting, China’s Read More
Trending Articles
Migrant farm workers
LegislationTrump: Immigration Crackdown Won’t Impact U.S. Agriculture
May 16, 2017
President Donald Trump said he would seek to keep his tough immigration enforcement policies from harming the U.S. farm industry Read More
AGCO Ratliff featured
Eric SfiligojRemembering Robert Ratliff
May 15, 2017
With all the fast-paced happenings in agriculture this spring, with multiple mergers in the works and planting season in full Read More
Case sprayer nozzle closeup
EquipmentSpray Application: A Nozzle Renaissance
May 2, 2017
If you had asked four-decade ag veteran Mark Bartel, President of Wilger Inc., just a few years ago what lay Read More
ManagementWashington Update, Dow-DuPont Earnings, and the Passing of an AGCO Legend
April 27, 2017
Editors Paul Schrimpf and Eric Sfiligoj talk about the latest Beltway news, crop protection company 1st quarter numbers, and the Read More
Crop InputsFlying Under the Radar No More, FMC Goes Big
April 13, 2017
Describing FMC as “under the radar,” admittedly, is probably a stretch. But in a snap of the fingers, FMC upped Read More
Young Corn Plants
Crop NutritionStill Hunting Yields
April 1, 2017
There’s no denying it — the agricultural marketplace today is undergoing a fundamental shift in fortunes. Not too many years Read More
Latest News
ManagementTrip Report, PSM R.I.P, and Ag’s Reaction to Federal Bu…
May 25, 2017
Editors Paul Schrimpf and Eric Sfiligoj talk about their recent travels, the end for Process Safety Management (PSM), and how Read More
Corn soil
LegislationARA Member Testifies Before Senate Ag Committee
May 25, 2017
Agricultural retailers stand on the front-lines of the American economy. As trusted advisors to America’s farmers, ag retailers are uniquely Read More
Young corn plants in soil
Crop InputsFortenza Insecticide Seed Treatment Receives EPA Regist…
May 25, 2017
Fortenza seed treatment insecticide from Syngenta has received registration approval from the U.S. EPA for use on corn and cotton Read More
ManagementFarm Market iD’s Agriculture Database Now Covers More T…
May 25, 2017
Farm Market iD, farmmarketid.com, has announced the release of its 2017 Annual Update of its farm and land database. The Read More
Food IT Fork-to-Farm
Precision AgThe Mixing Bowl Event Connects Technology, Food, and Ag…
May 24, 2017
For the fourth consecutive year, The Mixing Bowl presents FOOD IT, under the theme “Fork to Farm.” Action-oriented entrepreneurs, industry Read More
Photo credit: The United Soybean Board/The Soybean Checkoff.
Seed/BiotechKansas State University Researchers Find New Pathogens …
May 24, 2017
A single seed seems so simple. Put it in the ground, give it some care, and you’ve soon grown food. Read More
Soybean Field
HerbicidesNew Dicamba Herbicide Premix Coming Soon from Syngenta
May 24, 2017
Syngenta has announced the name of its new herbicide featuring the active ingredients of S-metolachlor and dicamba. Upon registration by Read More
Eric SfiligojMonsanto ‘Picks Its Battles’ by Nixing Deere Deal
May 23, 2017
Having been in the trade journalism game since the mid-1980s, I remember several watershed moments during my career. One of Read More
FungicidesSyngenta Launches New Seed Treatment Fungicide
May 22, 2017
Syngenta has announced the launch of PLENARIS seed treatment fungicide for the control of downy mildew in sunflower. PLENARIS contains Read More
Corn close up
Crop InputsMonsanto’s First HPPD Herbicide Garners EPA Appro…
May 19, 2017
Monsanto announced today that EPA has federally approved Harness MAX Herbicide, the first herbicide in the Monsanto portfolio to provide Read More
ManagementPrecision Planting Deal, China Developments, and Enviro…
May 18, 2017
Editors Eric Sfiligoj and Dan Jacobs discuss the latest news on John Deere’s now dead deal for Precision Planting, China’s Read More
Soybean aphid leaf
InsecticidesMulti-state Research Reveals IPM Best Option for Treatm…
May 17, 2017
About 89.5 million acres of soybeans will be planted across the U.S. in 2017 — a record high, according to Read More
GROWMARK-2017-Interns
CropLife 100GROWMARK Names 2017 Summer Interns
May 16, 2017
Forty-two college students are exploring agricultural career opportunities this summer as GROWMARK interns. They are working at FS member cooperatives Read More
Migrant farm workers
LegislationTrump: Immigration Crackdown Won’t Impact U.S. Ag…
May 16, 2017
President Donald Trump said he would seek to keep his tough immigration enforcement policies from harming the U.S. farm industry Read More
Flooded corn in Indiana
FertilizerBoth Wet and Dry Conditions Threaten Nitrogen Loss
May 15, 2017
The weather is notoriously unpredictable, leading to challenges for planting, harvesting and applying the nitrogen (N) your corn crop needs. Read More
farmer Kip Tom
Precision AgAg Tech: On the Cusp of Something Big?
May 15, 2017
The investment and ag-tech sectors’ continuing courtship of agriculture, smoldering for three or four years now, was well in evidence at Read More
AGCO Ratliff featured
Eric SfiligojRemembering Robert Ratliff
May 15, 2017
With all the fast-paced happenings in agriculture this spring, with multiple mergers in the works and planting season in full Read More
Greg Musson, Gar Tootelian
ManagementOpinion: Shaking Your Perspective in Ag Retail
May 12, 2017
Some of you I’m sure have encountered our recently retired salesman extraordinaire, Dan Bellanger. He worked in the industry for Read More