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Wednesday, May 07, 2008

 

Dole, Others Pressure EPA to Drop Ethanol Requirments

Senator Elizabeth Dole is signing on to an effort to get the EPA to reverse its mandate for certain levels of ethanol fuel production. She and 23 other senators say they are concerned the mandates contribute to higher domestic and international food prices.
There has been a worldwide shortage in cereal crops, such as rice, wheat and corn, due in part to the renewable fuel standard included in the Energy Independence and Security Act of 2007, which mandated highly subsidized corn-based ethanol production.

“To meet this requirement, a substantial volume of our corn crop and our vegetable oils will have to be diverted into our fuel supplies, severely impacting food and feed prices,” wrote Dole and her colleagues. “We believe the EPA should begin the process of examining alternatives to ease the severe economic and emerging environmental consequences that are developing in America as a result of the mandate.”

According to the Bureau of Labor Statistics, food costs are rising by 4.9 percent and studies suggest that the cost of food will continue to escalate over the next few years. Since February 2006, the price of corn has increased by more than 200 percent, thereby resulting in feed price increases that impact the cost of items such as milk, eggs and meat.





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