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RFA president Dineen tells industry: comment on RFS waiver request before deadline

June 18, 2008

At the International Fuel Ethanol Workshop, Renewable Fuels Association CEO Bob Dineen said that industry members should comment to the EPA on Texas Governor Rick Perry’s request for a waiver from the Renewable Fuel Standard. Dineen said information was available on the RFA website on how to file a comment. “This is going to be a difficult summer, but we’re going to get through it, and we are going to come out of this a stronger industry,” Dineen told ethanol executives gathered at the international conference.

RFS background

The Midwest Governors Association announced that they have written Environmental Protection Agency Administrator Stephen Johnson requesting that the EPA continue the Renewable Fuel Standard in its existing form and decline to issue waivers of ethanol blending requirements. The governors of Texas and Connecticut have issued requests for waivers in recent weeks. The EPA is responding to those requests by July.

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.

Also in Washington, the EPA is accepting comments in June 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 Policy 

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