The Midwestern Governors Association (MGA) is asking the Environmental Protection Agency (EPA) to uphold the Renewable Fuels Standard (RFS) passed by Congress last December.
In a letter to EPA Administrator Stephen Johnson, MGA says the “blame placed on ethanol for higher food prices is misguided. Higher food prices are the result of many factors, including rising transportation and production costs due to record oil prices, increased demand for grains and meat from developing countries, increased speculator investment and influence in all commodities markets, and extended global drought. As a result, all food commodity prices are high, not just the price of corn. In short, granting any waiver to the RFS will not reduce current food commodity prices.”
The letter also says the RFS will help move the ethanol industry toward use of cellulosic materials by “encouraging investment and technological innovations.” The letter was signed by Governors Mike Rounds (R-SD) and Jennifer Granholm (D-MI).