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Wednesday, July 23, 2008

EPA postpones decision on Texas governor's appeal for waiver of ethanol mandate

The Environmental Protection Agency postponed its decision on Texas' request to waive ethanol requirements for gasoline. The agency announced Tuesday that it will delay deciding whether or not to change the current ethanol mandate until early August. The original deadline for the agency's decision had been tomorrow.

The energy bill passed by Congress last December requires 9 billion gallons of ethanol to be blended into gasoline each year. In April, Perry asked the EPA to cut that in half, arguing that corn prices for livestock producers were rising because of the demand for ethanol.

"Perry said a one-year, 50 percent waiver from the grain-based Renewable Fuels Standard 'is an essential step toward decreasing the devastating statewide, national and international impact of skyrocketing feed and food costs,'' writes Clay Robinson for the Houston Chronicle. EPA Administrator Stephen Johnson said the agency needs time to review more than 15,000 comments on the request, make an informed decision and explain it. "The process remains fair and open, and no arguments have been made with any party in regard to the substance and timing of the decisions," Johnson said. "I am confident that I will be able to make a final determination on the Texas waiver request in early August." (Read more)

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