At Least 1 State Will Petition Federal Gov. For Waiver From Ethanol Blending Mandate Next Week [View all]

[hatrack]

At least one of four states hoping to ease requirements on adding grain-based ethanol to gasoline is expected to petition the federal government as soon as Monday as the worst drought in 50 years spikes corn prices and lowers profits for livestock producers. Governors from states that may petition the Environmental Protection Agency to waive the mandate known as the Renewable Fuel Standard, or RFS, include Republicans Nikki Haley of South Carolina, Dave Heineman of Nebraska, Rick Perry of Texas and Democrat Mike Beebe of Arkansas, an ethanol industry source said.

The RFS was signed into law by former President George W. Bush to help cut dependency on foreign oil by requiring that increasing amounts of ethanol be blended into gasoline each year. President Barack Obama has also embraced ethanol as part of his "all of the above" energy strategy.

But politicians in agricultural states that do not grow large amounts of corn worry the mandate raises the costs of animal feed for meat producers. About 40 percent of the corn crop is used to make ethanol, although distillers do recycle some byproducts to make animal feed.

Matt DeCample, a spokesman for Beebe, said the governor is "working on getting the word out to the EPA and others" that the mandate is hurting ranchers and poultry farmers with extra costs, but he has not yet signed on to a specific campaign to petition the agency.

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http://www.reuters.com/article/2012/07/27/us-usa-ethanol-waiver-idUSBRE86Q1FR20120727?feedType=RSS&feedName=environmentNews&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+reuters%2Fenvironment+%28News+%2F+US+%2F+Environment%29