Texas Calls Renewable Fuel Standard Misquided

The Governor of Texas, Rick Perry, has asked for a 50% waiver from the US Federal Renewable Fuel Standard (RFS), calling it a misguided mandate that is significantly impacting food costs.

The mandate requires a percentage of ethanol be added to petroleum and Gov. Perry's request is in response to the rapidly rising food costs that are a direct result of the US involvement in food-based fuel.

Corn prices rose 138% globally over the past three years and global food prices increased 83% in that same time period. With the new RFS mandate, corn prices are expected to rise another $8 per bushel, resulting in a $3.6 billion negative impact to Texas alone.

The U.S. Department of Agriculture reports that 25% of the corn crop was diverted to produced ethanol in 2007 and 30-35% will be diverted in 2008. How stupid is that? 25% of a basic food crop removed from the food chain to provide fuel?

Ethanol is still the wrong choice and I commend Governor Perry for speaking out against it.