FOR IMMEDIATE RELEASE: May 2, 2008
CONTACT: Matt Mackowiak
Sens. Hutchison, McCain Urge Ethanol Mandate Relief from EPA
States Need Process for Waiver Authority with Record High Food Prices
WASHINGTON -- U.S. Senator Kay Bailey Hutchison (R-TX), Chairman of the Republican Policy Committee, and Sen. John McCain (R-AZ), today sent a letter (also signed by 22 other Senators) to Environmental Protection Agency (EPA) Administrator Stephen Johnson about the status of regulations for states applying for an ethanol mandate waiver and urged that EPA take into consideration food inflation concerns.
The Energy Independence and Security Act (EISA) of 2007 increased the ethanol mandate to 15 billion gallons of corn and 1 billion gallons of bio-diesel by 2015 and 36 billion gallons by 2022. Congress gave the EPA the authority to waive the mandates or structure them differently if the mandate resulted in adverse unintended effects.
“We need to assess the corn-based ethanol mandate and its unintended effects on food prices for American consumers,” said Sen. Hutchison. “When we passed the ethanol mandate, the EPA was given the authority to waive the mandate or make necessary adjustments to prevent collateral damage. With the price of everyday meat, chicken, bread, and eggs rapidly increasing, we are asking the EPA to use the flexibility that Congress gave them because so many families cannot afford the increasing prices at the grocery store.”
“Every time hardworking American families buy groceries, they feel the financial sting of misguided federal policies mandating that taxpayers support ethanol,” said Sen. McCain. “It isn’t a surprise that food prices are rising when more than 25 percent of the corn grown today is taken out of the food supply and instead used for subsidized ethanol production. This subsidized program - paid for with taxpayer dollars - has contributed to pain at the cash register, at the dining room table, and a devastating food crisis throughout the world. We need to put an end to flawed government policies that distort the markets, raise food prices artificially, and pit producers against consumers. We must call on the EPA to exercise its authority to not exacerbate this already bad situation.”
Also signing the letter were Senators Wayne Allard (R-CO), John Barrasso (R-WY), Robert Bennett (R-UT), Richard Burr (R-NC), Susan Collins (R-ME), Bob Corker (R-TN), John Cornyn (R-TX), Mike Crapo (R-ID), Jim DeMint (R-SC), Elizabeth Dole (R-NC), John Ensign (R-NV), Mike Enzi (R-WY), Lindsey Graham (R-SC), Orrin Hatch (R-UT), James Inhofe (R-OK), Johnny Isakson (R-GA), Lisa Murkowski (R-AK), Richard Shelby (R-AL), Ted Stevens (R-AK), John Sununu (R-NH), David Vitter (R-LA), and Roger Wicker (R-MS). Senators Murkowski, Burr, DeMint, Corker, Barrasso, and Sessions are members of the Senate Energy Committee. Senators Inhofe, Isakson, Vitter, and Barrasso are members of the Senate Environment and Public Works Committee.
According to the World Agricultural Supply and Demand report, U.S. wheat stocks are at 60 year lows and soybean stocks at their lowest levels since 2003. Corn ending stocks relative to expected use, even with last year’s record crop, are well below the established 25 year average. Since February 2006, the price of corn, wheat and soybeans has increased by more than 200 percent. In 2007 ethanol production reached 6.5 billion gallons and the federal mandate for production this year is nine billion gallons.
--END--
|
