A Texas Timeout on Biofuels
The Bear on May 31 2008 at 8:24 am | Filed under: Energy Policy
The state of Texas is now in official opposition to the federal ethanol mandate. Governor Rick Perry has petitioned the Environmental Protection Agency for a one-year reprieve, and the reason is simple and increasingly familiar: Washington’s ethanol obsession is hurting the state.
We all know that corn farmers everywhere love ethanol. Don’t tell that to Texas cattle ranchers. Because of the mandate to add this biofuel to gasoline, ranchers are being forced into bidding wars with ethanol plants for the grains they feed their cattle. They don’t appreciate being hammered on price because of a subsidy to corn growers. Thus, Governor Perry’s petition.
The Governor’s goal is to win a ruling from the EPA that suspends half the federal requirement that nine billion gallons of this product be added this year to the nation’s fuel supply. Last week the EPA opened a 30-day public comment period on the Texas waiver request, the first step in what could lead to granting his request.
The most interesting thing revealed by this effort is that EPA holds the power to stand down from the ethanol fiasco. Congress gave EPA the authority to grant such waivers in the event the ethanol mandate had unforeseen consequences.
More from The Wall Street Journal
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