EPA decision sets precedent
Posted: Friday, August 08, 2008
SIOUX FALLS, S.D. (AP) -- The Environmental Protection Agency's decision to uphold a renewable fuels standard sets an important precedent, the executive director of the American Coalition for Ethanol said.
"Ethanol's benefits to fuel prices far outweigh any food-related price increases from ethanol," said Brian Jennings, of the American Coalition for Ethanol in Sioux Falls.
"We need it (renewable fuels standard) because with oil at $120 a barrel we still need cost effective and clean-burning alternatives at the pump."
A federal energy bill passed late in 2007 requires that 9 billion gallons of ethanol be blended into gasoline. Texas Gov. Rick Perry had asked the EPA to drop the requirement to 4.5 billion gallons because he said demand for ethanol is driving up corn prices for livestock producers and driving up food prices.
Without alternative fuels, oil refineries would have to increase their production of gasoline to offset the loss of ethanol, according to the South Dakota Corn Growers Association.
Ethanol production is responsible for only a small portion of higher food prices, said Bill Chase, the group's president.
"By extending fuel supplies, ethanol actually reduces fuel costs significantly," Chase said.
The state's congressional delegation hailed the EPA decision.
"Granting this waiver would have increased gas prices for consumers, discouraged the development of biofuels, and jeopardized the future of cellulosic biorefineries that have already been built or are in the planning or construction stages around the nation," said Republican Sen. John Thune.
"In 2007, we made strong improvements to our energy policy to reduce our dependence on foreign oil," said Democratic Sen. Tim Johnson. "Today's decision by the EPA administrator is a strong step toward implementing better energy policy that will benefit consumers today and in the coming years."
"Given that biofuels are helping make America more energy independent and that studies show biofuels are helping to keep gas prices lower than they otherwise would be, it's clear that our commitment to renewable fuels must not waver," said Democratic Rep. Stephanie Herseth Sandlin.
"Ethanol's benefits to fuel prices far outweigh any food-related price increases from ethanol," said Brian Jennings, of the American Coalition for Ethanol in Sioux Falls.
"We need it (renewable fuels standard) because with oil at $120 a barrel we still need cost effective and clean-burning alternatives at the pump."
A federal energy bill passed late in 2007 requires that 9 billion gallons of ethanol be blended into gasoline. Texas Gov. Rick Perry had asked the EPA to drop the requirement to 4.5 billion gallons because he said demand for ethanol is driving up corn prices for livestock producers and driving up food prices.
Without alternative fuels, oil refineries would have to increase their production of gasoline to offset the loss of ethanol, according to the South Dakota Corn Growers Association.
Ethanol production is responsible for only a small portion of higher food prices, said Bill Chase, the group's president.
"By extending fuel supplies, ethanol actually reduces fuel costs significantly," Chase said.
The state's congressional delegation hailed the EPA decision.
"Granting this waiver would have increased gas prices for consumers, discouraged the development of biofuels, and jeopardized the future of cellulosic biorefineries that have already been built or are in the planning or construction stages around the nation," said Republican Sen. John Thune.
"In 2007, we made strong improvements to our energy policy to reduce our dependence on foreign oil," said Democratic Sen. Tim Johnson. "Today's decision by the EPA administrator is a strong step toward implementing better energy policy that will benefit consumers today and in the coming years."
"Given that biofuels are helping make America more energy independent and that studies show biofuels are helping to keep gas prices lower than they otherwise would be, it's clear that our commitment to renewable fuels must not waver," said Democratic Rep. Stephanie Herseth Sandlin.
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Bobby Fontaine wrote on Aug 8, 2008 9:48 AM:
Adam wrote on Aug 8, 2008 9:39 AM: