Tuesday, July 01, 2008

Lawmakers Ask for Reduction of Ethanol Useage

As the midwest begins to recover from flooding, the assessement of how much crops were lost has begun. USDA has release their June 30 crop report and the numbers did show a decline from last year, but not as much as some analysts thought would happen.

But a group of lawmakers has asked the EPA to lower their requirements for ethanol production:

More than four dozen House Republicans asked the Environmental Protection Agency on Monday to reduce required ethanol production this year, saying renewable fuel standards enacted by Congress will boost already high corn prices in the wake of Midwest floods.

"The Renewable Fuel Standard (RFS) is a significant factor in the increased cost of commodities, which is causing severe economic harm for low-income Americans and livestock producers," the 51 lawmakers, led by Rep. Bob Goodlatte of Virginia, senior Republican on the House Agriculture Committee, said in a letter to EPA Administrator Stephen Johnson.

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