The Environmental Protection Agency (EPA) has denied requests for a waiver of the ethanol mandate component of the Renewable Fuels Standard (RFS) after record-setting drought this summer pushed up corn prices.
EPA says waiving the ethanol mandate would only reduce corn prices by 1% and therefore would provide livestock producers little relief from high feed costs little relief. EPA's air chief, Gina McCarthy, said that "our extensive analysis makes clear that congressional requirements for a waiver have not been met and that waiving the RFS will have little, if any, impact."
EPA had missed its deadline for delivering a decision on the mandate by three days, marking the second time EPA has considered and rejected an RFS waiver request. EPA made its decision in conjunction with the Obama administration.
The RFS mandate requires ethanol consumption of 13.2 billion gallons in 2012 and 13.8 billion gallons in 2013. Get more details on the waiver decision here.
PF Perspective: The decision was not surprising as a lot of work was done prior to the decision that showed a waiver would not have the price or supply response those requesting it had hoped.