Republican lawmakers want U.S. ethanol requirements reduced

WASHINGTON (AP)--More than four dozen House Republicans asked the Environmental Protection Agency on June 30 to reduce required ethanol production this year, saying renewable fuel standards enacted by Congress will boost already high corn prices in the wake of Midwest floods.

"The Renewable Fuel Standard is a significant factor in the increased cost of commodities, which is causing severe economic harm for low-income Americans and livestock producers," the 51 lawmakers, led by Rep. Bob Goodlatte, senior Republican on the House Agriculture Committee, said in a letter to EPA Administrator Stephen Johnson.

"The (Bush) administration can immediately impact the supply of corn that will be used for food and feed and lessen the severe economic harm facing millions of Americans," Goodlatte and the others wrote.

Texas Gov. Rick Perry asked EPA in April to cut by half a requirement in last year's energy law to produce 9 billion gallons (34 billion liters) of ethanol in 2008 for blending into gasoline. That is 30 percent to 35 percent of the U.S. corn crop this year, the U.S. Department of Agriculture says.

Corn prices have surged more than 80 percent in the past year due to sharp increases in global demand to feed people and livestock and to make ethanol for gasoline blends.

Recent flooding in the Midwest and drought in the South reducing this year's corn crop will only add to the supply pressure. The USDA reported June 30 that farmers will harvest 9 percent fewer acres (hectares) of corn this year in part because of the flooding.

A 2005 energy law allows individual states to seek a reduction in the renewable fuel standard if they can show it will harm the economy or environment. An EPA decision on Texas' appeal is expected in July.

7/14/08
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Date: 7/3/08

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Reader Comments AlFromIllinois — 07/25/2008 11:07:50 Ethanol mandates were an undeserved gift to corn farmers. Ethanol has less energy content than gasoline and so worsens mileage. It's also more expensive to transport than gas, and it's worse for engines designed to run on gas (most in the American market). Remove the mandates and let ethanol find its appropriate place as a fuel on its own merits. I'm from Illinois, and I'm not a Sen. Dick Durbin basher, but his fervent continuing support for ethanol mandates is contemptible and obviously designed to favor some of his constituents at the expense of the good of all Americans and other of the world's peoples. Article: Republican lawmakers want U.S. ethanol requirements reduced Add Your Comment To post a comment on this story, enter your screen name and email address then click "Add Comment." Your email address will not be displayed. 192 Recommend | 1 Comments

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