EPA denies Texas request to waiver ethanol mandates

Frozen Food Digest, Oct, 2008

On August 7, 2008, Environmental Protection Agency (EPA) administrator Stephen L. Johnson announced EPA's decision to deny the State of Texas' petition for a waiver to the Renewable Fuel Standard (RFS).

In April 2008, Texas Governor Rick Perry officially asked the EPA to exercise its authority to modify RFS ethanol production mandates. Citing rising corn costs and other economic factors, Perry requested a 50% nationwide waiver which would keep 2008 ethanol production at the 2007 level.

After receiving the request, EPA solicited public comment on the ethanol issue and received over 15,000 responses, including AFFI's statement endorsing the Texas petition. At the end of July, Johnson stated EPA needed more time to examine the comments and research the issues.

When announcing the decision to deny Texas' request, Johnson clarified that the RFS granted EPA authority to waive ethanol mandates if they were shown to be causing "severe economic or environmental harm."

After much study and consulting with the U.S. Department of Agriculture and the U.S. Energy Department, the EPA determined that RFS is not causing economic harm at a level justifying a waiver. The 2007 mandated production level for renewable fuels was 4.5 billion barrels. The denial of the waiver request means the 2008 level will be 9 billion barrels and the 2009 required level is 11.1 billion barrels.

Many economists and food industry leaders differ with EPA's determination about ethanol's economic impact and are expressing disappointment at the agency's refusal to waive or modify the mandates.