Sen. Cornyn Statement On EPA Decision To Deny Texas Request For Ethanol Mandate Waiver

Press Release

Sen. Cornyn Statement On EPA Decision To Deny Texas Request For Ethanol Mandate Waiver

U.S. Sen. John Cornyn, R-Texas, made the following statement regarding today's decision by the U.S. Environmental Protection Agency (EPA) to deny Texas' request to cut the federal ethanol mandate. Sen. Cornyn had previously co-signed a letter with other Senators asking EPA to use its waiver authority to relax the corn-based mandate. He is also co-sponsoring legislation introduced by Senator Kay Bailey Hutchison which would freeze the renewable fuel standard corn-based ethanol mandate at current 2008 levels.

"This decision is very disappointing and frankly, represents a blind eye by the federal government to the high food prices that Texas families are struggling with each day. Since this mandate was implemented, the livestock industry in Texas has faced historically high feed costs, which are now being passed on to consumers. EPA contends that the largest spike in feed price history does not meet their definition of ‘severe' economic harm. Texas ranchers and cattlemen disagree. It is unfortunate for Texas ranchers and families that the EPA has overlooked this. Not only is the ethanol mandate putting a strain on family grocery budgets, it is also having a negative impact on non-profits like food banks in their ability to help those in need. I have recently visited food banks in Texas that are struggling to afford high food prices and meet an increased need for assistance from the community.

"The EPA's decision highlights why Congress must act to freeze the corn-based ethanol mandate. It will allow us to re-evaluate the consequences of using food for fuel and reduce increasing grocery, grain and feed prices. Texas will remain a leader as we work to diversify our nation's energy supply to include alternative and renewable sources, but in the meantime Congress must act. I will continue to work with Senator Hutchison to move legislation forward that freezes the national ethanol mandate."

Background:

Congress passed legislation last year requiring an annual increase in domestic ethanol production from 4.7 billion gallons in 2007, to nine billion this year, and increasing to 15 billion in 2015. According to reports, the combined price of corn, wheat and soybeans has increased more than 416 percent since February 2006. Last year's bill, the Energy Independence and Security Act (EISA), also provided the EPA the authority to waive the mandates, or adjust them as necessary to provide relief for consumers.

In April, Sen. Cornyn joined Sen. Hutchison and others in sending a letter to EPA Administrator Stephen Johnson requesting an update on the pending rule-making process for the waiver of all or portions of the ethanol mandate passed by Congress in 2007. The letter also urged the EPA to consider the sharp rise in food prices as they review the mandate.

In addition, Sen. Cornyn is backing legislation, S.3031, to place a freeze on the national ethanol mandate, which has caused not only the price of corn to skyrocket, but also had a ripple effect on the price of other food products like poultry and grains. He believes a temporary freeze on food-to-fuel mandates will allow time for a reassessment of how to boost renewable fuel research and production without shifting the cost burden to consumers, and also time for food prices to return to an affordable level.

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