Last Friday, the EPA announced that it would not waive the Renewable Fuel Standard (RFS) requirements for corn-based ethanol. ABA urged EPA and USDA to consider the waiver, or partial waiver, from the RFS mandate due to the severe drought conditions and reduced crop yields that the US is experiencing. Members of Congress and the governors of Arkansas, North Carolina, Maryland, Delaware, Georgia, Virginia, New Mexico and Texas all asked EPA to consider granting some type of relief. EPA was not convinced. EPA and DOE conducted economic analyses and concluded that waiving the ethanol mandate would not “severely harm the economy of a State, a region, or the United States”. Senators Mark Pryor (D-AR) and John Boozman (R-AR) have already criticized the EPA decision. The RFS will likely undergo more scrutiny in the 113th Congress.
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