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Secretary of Agriculture takes offensive in support of biofuels as EPA opens comments period on ethanol mandate waiver

May 20, 2008

In Washington, US Agriculture Secretary Ed Schafer kicked off a response to recent attacks on biofuels, saying that fuel diversity is central to US security and added “The change in the Renewable Fuels Standard, the change in the (ethanol) tariff or duty, isn’t going to effect food prices. We need to focus on things that will actually have an effect, instead of a short-term political solution we need to look long-term, because we have a long-term problem here.”.

Meanwhile, Sen. Chuck Grassley accused food manufacturers of a “smear campaign” against biofuels and sent a letter to companies such as ConAgra and Archer Daniels Midland asking them to repudiate the Grocery Manufacturers Association PR campaign to assemble a “global; center-left coalition” against biofuels. Secretary Schafer said that companies participating in the campaign against ethanol told him that while they understood that higher energy and transport costs are the driver of price increases “it’s easier” to target biofuels.

Also in Washington, the EPA is accepting comments for 30 days on the requests by the Governor of Texas to waive the Renewable Fuel Standard. More information on the request and how to comment is here. The EPA is required to respond by July 25, according to the 2007 Energy Independence and Security Act.

Texas Governor Rick Perry requested a 50 per cent waiver from the federal renewable fuel standard as a response to rapidly rising food prices. “We appreciate the good intentions behind the push for renewable fuels,” Perry said in a statement. “In fact, we’re diversifying our state’s energy portfolio at a rapid rate, but this misguided mandate is significantly affecting Texans’ family food bill. There are multiple factors contributing to our skyrocketing grocery prices, but a waiver of RFS levels is the best, quickest way to reduce those costs before permanent damage is done.”

“Ultimately, food prices are reaching high levels, so we’re looking at this as an option for reducing that burden,” said Allison Castle, a spokeswoman for Gov. Perry, told cattlenetwork.com. State have sought temporary waivers from EPA mandates in the past, but this is one of the first permanent waivers, and may cause ethanol quotas for other states to increase.

The Renewable Fuel Standard, and state biofuels mandates, have come under increasing scrutiny since the passage of the Energy Security and Independence Act over food price concerns.

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    Written by Jim Lane · Filed Under The Daily Biofuel Summary 

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