Some Senate Republicans Want Renewable-Fuels Waiver

Mon. May 5, 2008


Two dozen Senate Republicans Friday sent a letter to EPA Administrator Johnson asking him to consider waiving all or parts of a renewable-fuels mandate Congress approved in December, including issuing a rule that allows states the chance to seek a waiver. Congress approved such a waiver in December's energy bill due to concern over its effect on food supply and prices, and it gave EPA the authority to carry out this rule in that bill. Presumptive Republican presidential nominee Sen. John McCain of Arizona, Senate Republican Policy Committee Chairwoman Kay Bailey Hutchison of Texas, and 22 others wrote that 30 percent of the nation's corn and vegetable oils will be used to fulfill the bill's requirement of 15 billion gallons of corn-based ethanol and 1 billion gallons of biodiesel by 2015. EPA should start to look at "alternatives that ease the severe economic and emerging environmental consequences that are developing in America as a result of the mandate," they wrote. The Agriculture Department said a quarter of the corn crop went to ethanol production last year, and up to 35 percent will be used this year. Lawmakers in both parties have cited the need to review the implementation and effect of the mandate. The House Energy and Commerce Energy and Air Quality Subcommittee will review it at a hearing Tuesday.

On the opposite side, Senate Agriculture Chairman Tom Harkin in a statement today said EPA should continue to implement the mandate. "To single out increased biofuels production and use in the United States, European Union and other countries as the chief cause of higher world food prices is an over simplification of the problem," Harkin said. He cited other factors, including strong food import demand in China and India and poor harvest in recent years in Europe and Australia. Harkin's home state of Iowa is tops in the nation in ethanol production capacity. Farm and ethanol groups say record oil prices, hedge fund commodity speculators, increasing global demand for grain, and severe droughts are to blame for rising food prices. They argue that biofuel expansion will keep oil prices in check.

by Darren Goode

Mon. May 5, 2008

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