Should the Renewable Fuel Standard Be Waived? EPA Extends Public Comment Period

A number of governors have petitioned the Environmental Protection Agency to waive the Renewable Fuel Standard in the wake of the devastating heat wave and drought which covered much of the United States this year and reduced the size of this year’s corn crop. The EPA has extended the period for public comment on the waiver request. EESI has published an issue brief exploring some of the related issues.

Due to this summer’s extreme weather, the U.S. Department of Agriculture estimates that American farmers will produce about 13 percent less corn than in 2011. Consequently, there will be that much less corn available domestically until the next harvest in 2013. In the meantime, the demand for corn to meet the Renewable Fuel Standard (RFS) in 2013 is scheduled to increase by about 4.5 percent.

The question of who will have to cut back on corn consumption in the year ahead has become as much a political question as it is an issue for the market to resolve. As reported previously in SBFF , several governors from livestock and poultry producing states , with support from the meat, poultry, and food processing industries , are calling on the Environmental Protection Agency (EPA) to waive the RFS for the remainder of 2012 and all of 2013 to reduce demand for corn from the renewable fuel industry. They argue that this would make more corn available at lower prices for meat and poultry producers and food processors, and reduce the rate of food inflation for consumers in the year ahead.

These issues are, of course, quite complicated and the decision is perhaps not so straightforward. Many different values and national priorities – environmental, energy, economic – come into play, as well as issues concerning the fuel refining industry’s capacity and incentives to reduce the blending of ethanol with gasoline.

EESI has prepared an issue brief, ( Requests to Waive the Renewable Fuel Standard in the Aftermath of the 2012 Heat Wave and Drought ) , which explores many of the related issues.

On September 10, the EPA announced that it would extend the public comment period until October 11. For directions on how you can submit your comments and to see other comments submitted, visit the regulatory comment website here .