EPA To Deny Texas Ethanol Mandate Waiver - Oil and Gas * Energy * News * Story

Runway Angels
The superbowl of fashion shows, models walk down the runway at the 2009 Victoria's Secret Fashion Show.
Smartphone Guide
Here's a need-to-know guide to nine devices, based on features, price, network and platform.
Wines for the Holidays
Not quite sure what wine to pair with Turkey or Creme Brulee? Our experts do.

FEATURED QUIZZES

How Much Do You Know About Green?
Green has become part of our everyday lives. Green is everywhere-- energy, clothing, food, housing, transportation. It's a big business and a global business.
The Billionaire BFF's
Philanthropists. Bridge partners. Hockey players. Which responses are based on facts from Buffett's and Gates' real lives?
The Many Myths of Coca-Cola
Can you tell which statements are true, and which ones are just rumors?

SPECIAL REPORTS

Winterizing Your Portfolio
If 2009 was the winter of our discontent, will 2010 be a winter wonderland for investors? A lot depends on the recovery—or lack thereof.
Investor's Guide to Real Estate
Some even say the long-awaited recovery is here. Regardless, buyers and sellers alike can profit from our guide.
Alternative Investing
Stocks and bonds? Sure. But it's a big world out there for investors.

CNBC ON DIGG

EPA To Deny Texas Request to Cut Ethanol Mandate

Topics:Environment | Alternative Energy | Energy | Commodities

Sectors:Oil and Gas

By: Reuters | 06 Aug 2008 | 06:33 PM ET

Text Size

The U.S. Environmental Protection Agency will deny Texas' request to cut the federal ethanol mandate on Thursday, a government official with knowledge of matter said on Wednesday.

Charlie Neibergall / AP

The government official asked not to be identified.

Texas Governor Rick Perry asked EPA in April to reduce the renewable mandate requiring 9 billion gallons of ethanol and other renewable fuels to be blended into gasoline by 50 percent in 2008. Perry said the mandate is pushing up the price of corn, which is used to make most ethanol in the United States.

Livestock producers, who rely on corn to feed their animals, say the rising price of corn is hurting their industry and the higher costs are being passed on to consumers.

U.S. Agriculture Secretary Ed Schafer said last week, however, he would not advise cutting the federal mandate.

"If I were to make a recommendation I would recommend that we not change it," Schafer told Reuters. "I don't think that the economic damage according to the law that allows a change is there."

The EPA consulted with the U.S. Agriculture Department and the U.S. Energy Department about the waiver request. (Watch the accompanying video from last week when Texas Gov. Perry petitioned to waive regulations...)

Corn farmers and representatives of the ethanol industry said the waiver was unnecessary and approving it would hurt investment in the alternative fuel.

"It would send a signal that the federal government is backing away from its commitment to renewable energy," said Tom Buis, president of the National Farmers Union.