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)