EPA Administrator to rule today on ethanol waiver; CNBC says waiver request will be denied

In Washington, EPA Administrator Stephen Johnson will announce today his ruling on the request by Texas Governor Rick Perry to reduce the Renewable Fuel Standard by half. The announcement will be made at a press conference at 1pm. CNBC is reporting based on an anonymous government source “with knowledge of the matter” that Johnson will deny the request.

USDA Secretary Ed Shaefer said earlier this week that he would advise against reducing the federal mandate. Governor Perry requested that the EPA cut the mandate to 4.5 billion gallons this year, and was partially joined in his request by Governor Rell of Connecticut. 21 other Republican state governors declined to join the request when solicited earlier this year by Perry’s staff.

The Digest has previously reported on the strong ties between Gov. Perry’s office and officials at Pilgrim’s Pride, a chicken producer that has faced increased costs this year on corn feed.

Also, the Digest reported last month a prediction by Clean Fuels Clearinghouse that the waiver would not be granted, on the basis that fuel blenders could carry over a deficit of renewable fuel credits under the EISA Act where unforeseen circumstances create difficult conditions in the commodity and fuel markets.

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