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EPA Rejects Texas Request to Cut Ethanol Waiver
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US: August 8, 2008


WASHINGTON - The US Environmental Protection Agency said on Thursday it denied a request by Texas to cut the federal ethanol mandate requiring 9 billion gallons of ethanol and other renewable fuels to be blended into gasoline this year.


The EPA said there was no evidence to support the claim by Texas that the mandate would "severely harm" the US economy.

The agency added that reducing the mandate "would have no impact on ethanol production volumes in the relevant (2008) time frame, and therefore no impact on corn, food, or fuel prices."

Gov. Rick Perry of Texas asked EPA in April to cut the mandate by 50 percent in 2008. Perry said the ethanol production was driving up the price of corn, which is the main source of ethanol in the United States. (Reporting by Ayesha Rascoe)


REUTERS NEWS SERVICE



© 2008 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters.
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