EPA Mandates that Texas Keep Digging Ethanol Hole

ReeveEthanolPlant.jpg “At the Reeve plant near Garden City, Kan., grain is made into ethanol, and the byproducts are fed to cattle in the adjacent feedlot.” Source of caption and photo: online version of the NYT article quoted and cited below.

Unfortunately, the EPA rejected Gov. Paley’s request, discussed in the article quoted below:

(p. C1) The ethanol industry, until recently a golden child that got favorable treatment from Washington, is facing a critical decision on its future.

Gov. Rick Perry of Texas is asking the Environmental Protection Agency to temporarily waive regulations requiring the oil industry to blend ever-increasing amounts of ethanol into gasoline. A decision is expected in the next few weeks.
Mr. Perry says the billions of bushels of corn being used to produce all that mandated ethanol would be better suited as livestock feed than as fuel.
Feed prices have soared in the last two years as fuel has begun competing with food for cropland.
“When you find yourself in a hole, you have to quit digging,” Mr. Perry said in an interview. “And we are in a hole.”
His request for an emergency waiver cutting the ethanol mandate to 4.5 billion gallons, from the 9 billion gallons required this year and the 10.5 billion required in 2009, is backed by a coalition of food, livestock and environmental groups.
Farmers and ethanol and other biofuel producers are lobbying to keep the existing mandates.

For the full story, see:
DAVID STREITFELD. “Uprising Against the Ethanol Mandate.” The New York Times (Weds., July 23, 2008): C1 & C5.

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