This whole effort is being pushed for Big Oil by the Wall Street Journal and RW lawmakers. It really hurts to see DUers joining into the chorus.
http://goodlatte.house.gov/system/uploads/156/original/RFS_Waiver_Letter_08.02.12.pdf
http://www.ncga.com/news-stories/621-ncga-sets-record-straight-on-house-letter-urging-epa-to-waive-rfs
Among the congressmen who signed the letter to EPA are Darrell Issa, Louie Gomhert, Virginia Foxx and climate denier extraordinarie James Inhoff. Repeal of the renewable fuel standard is a a RW article of faith.
If ethanol plants are shut down US fuel prices would rise between 20- 80 cents per gallon... more profits for Big Oil. Renewables (ethanol, bio-diesel, etc) are now blended in about 10% of our transportation fuel, keeping a downward pressure on international oil prices.
This year US farmers put out 5 million more acres of corn than in 2011. Even with the drought, we should one of the ten biggest crops ever.
That 40% corn usage figure is total BS. Most field corn is used for animal feed and ethanol actually creates a byproduct- dried distillers grain- which remains in the animal food chain. It's more like 5% corn usage, net.
Ironically, one of the major contributors to rising corn prices are higher fuel prices. After all, it takes huge volumes of oil to harvest our food supply, and by killing renewables you're putting Big Oil right back into the driver's seat.
Calls for removal of the renewable fuel standard are being orchestrated by the Koch Bros and Big Oil as a means of strangling the renewable fuels industry (which is ramping up to using non food crops) in the crib.