Center for Advanced BioEnergy Research, University of Illinois at Urbana-Champaign

Friday, June 27, 2008

Floods give more fuel to critics of ethanol

As corn prices climb, Texas governor is expected to urge EPA to amend rules
By BRETT CLANTON
Copyright 2008 Houston Chronicle
June 23, 2008, 10:43PM

Already under siege from many sides, the U.S. ethanol industry is facing further pressures as recent Midwest flooding pushes corn prices to new highs and federal regulators weigh calls to reduce required use of the fuel.

One of the people calling for that is Gov. Rick Perry, who has scheduled a news conference on the subject today in Washington. Fearing the effects of high corn prices on the state's cattle and poultry industries, he has called on the federal government to suspend or reduce its mandate setting minimum levels of ethanol in the nation's fuel supply.

He is expected to urge the Environmental Protection Agency to amend the ethanol requirement this year, citing its damaging impact on Texas' economy. An EPA comment period on the proposal formally ended Monday.

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