July 22, 2008

EPA puts off decision on RFS waiver request

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A Washington, DC-insider put the odds of EPA Administrator Stephen Johnson putting off a decision on whether to grant a 50 percent waiver of the Renewable Fuels Standard at 3 to 1.

It turns out the odds were right on, as Johnson said in a statement today that the agency needs more time to "sufficiently answer the Texas request for a waiver from the Renewable Fuels Standard (RFS)." He said additional time is needed to allow staff "to adequately respond to the public comments and develop a decision document that explains the technical, economic and legal rationale of our decision."

Johnson said EPA received more than 15,000 comments on the issue and that a number of the comments "raised substantive issues and included significant economic analysis. I believe it is very important to take sufficient time to review and understand these comments in order to make an informed decision."

EPA is also required to consult with the Departments of Agriculture and Energy in considering whether to grant or deny the waiver request. He said EPA has begun such consultations.

Although not specified, Johnson also appeared to make a reference to complaints by several Senators that he met privately with Texas Gov. Rick Perry, who filed the waiver request. Johnson said: "The process remains fair and open and no agreements have been made with any party in regard to the substance and timing of the decision on the waiver request. "

Johnson added that he was "confident" he will be able to make a final determination on the waiver request "in early August."

That timing is also interesting, considering USDA's first production report for the new crop is coming out August 12. That report will also include updated planted/harvested acre estimates following USDA's more in-depth survey after flooding earlier this year. How closely could EPA's decision and USDA's crop report be tied together?

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