In a move that is likely to make OPEC unhappy, the Environmental Protection Agency denied a request to waive part of the Renewable Fuel Standard. EPA Administrator Stephen L. Johnson said “The RFS remains an important tool in our ongoing efforts to reduce America’s greenhouse gas emissions and lessen our dependence on foreign oil, in aggressive yet practical ways.” POET issued a statement that was quickly picked up here, here and here.
While most people expected the waiver request to fail, it is good to have the EPA weigh in on corn-based ethanol with their independent, scientific analysis. Special interests have orchestrated a campaign against ethanol, despite the fact that virtually every independent study shows that the impact of ethanol production on food prices is minimal. Today, the EPA forcefully rejected the attacks on ethanol and instead sided with the science. There is additional irony in the fact that the denial was issued on a day that corn was trading nearly $3 below its high of just a few weeks ago.
With this decision behind us, the ethanol industry can move forward and continue to decrease our country's dependence on foreign oil, strengthen our economy and improve the environment.
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