EPA Rejects Texas Request to Ease U.S. Biofuels Rule

U.S. officials rejected Texas Governor Rick Perry’s request to ease requirements on the use of corn- based ethanol in gasoline, saying he didn’t prove that the rules are straining grain supplies and causing “severe economic harm.”

“After reviewing the facts, it was clear this request did not meet the criteria in the law,” Environmental Protection Agency Administrator Stephen Johnson said today. The renewable fuels standard “remains an important tool in our ongoing efforts to reduce America’s greenhouse gas emissions and lessen our dependence on foreign oil, in aggressive yet practical ways,” he said.

The EPA said in a statement that while commodity prices have risen, an analysis of Texas’ request found no compelling evidence that the mandate is causing “severe economic harm” during the time period specified by the state.

The decision ensures ethanol producers such as Poet LLC, in Sioux Falls, South Dakota, and Archer Daniels Midland Co., in Decatur, Illinois, will continue to have demand for their fuel.

Bloomberg