Goodlatte Disappointed in EPA Ruling on Renewable Fuel Standard
Press Release
GOODLATTE DISAPPOINTED IN EPA RULING ON RENEWABLE FUEL STANDARD
Says RFS Mandate Unrealistic With Current Economic Situation
Congressman Bob Goodlatte, Ranking Republican on the House Agriculture Committee, expressed disappointment in the Environmental Protection Agency's (EPA) decision to deny a waiver request to reduce the amount of ethanol mandated by the Renewable Fuel Standard (RFS). Goodlatte says the mandate has created a serious imbalance within the nation's food supply because corn producers are not able to meet the demands of both consumers and the mandate. Corn prices have increased significantly and livestock producers throughout the country are struggling under the weight of increased input costs, which in turn is driving up food prices for consumers. Nearly one-third of the U.S. corn crop is projected to be used to meet the increased RFS of 9 billion gallons of ethanol in 2008, which is twice the amount of ethanol mandated in 2007.
"The RFS has increased too fast, too soon. Doubling the RFS in a single year is more than the agriculture sector can handle, and has created economic hardships for our livestock producers and the American consumer. A temporary waiver would have offered immediate relief to those affected by the current shortage of the corn supply," said Congressman Goodlatte.
In June, Goodlatte, along with 50 of his Republican colleagues, sent a letter to the Administrator of the EPA in support of the waiver request by Governor Rick Perry of Texas. States can request waivers for up to one year and those waivers can be renewed at the discretion of the Administrator. Goodlatte is concerned about the impact of the mandate on Virginia's economy. The increased production costs for livestock and poultry producers coupled with higher food costs for consumers will result in an estimated net loss of $863 million in Virginia.
"We are seeing the impacts of using food for fuel now, even before the mandate is reached. We must ensure that there are not unintended economic distortions to either grain or livestock as a result of this mandate. Corn and soybeans' most valuable market has always been, and will continue to be, the livestock producers," said Congressman Goodlatte.
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