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Corn-Hungry Texas Calls for Cuts in Biofuel Mandates

Ethanol future in balance as governor pleads for livestock corn

By Laurel Jorgensen,  Newser Staff

Posted Jul 23, 2008 2:32 AM CDT

(Newser) – The EPA is considering a proposal from the governor of Texas to slash the amount of ethanol that oil companies are required to blend into gasoline to meet quotas, the New York Times reports. Gov. Rick Perry is calling for the EPA to cut the ethanol mandate in half, from 9 billion to 4.5 billion gallons, arguing that billions of bushels of corn should be used to feed livestock instead.

Competition for corn has led to a sharp increase in feed costs. A coalition of food, livestock, and environmental groups supports Perry’s petition, but farmers and biofuel advocates argue that it would be the beginning of the end for ethanol as a viable alternative fuel. “Where are you going to find the oil to replace 9 billion gallons of ethanol?” asked an industry expert. But Perry said: “When you find yourself in a hole, you have to quit digging—and we are in a hole.”

Corn-and-soybean farmer John Adams walks past corn storage silos on his 950-acre farm Thursday, April 5, 2007, near Atlanta, Ill.
Corn-and-soybean farmer John Adams walks past corn storage silos on his 950-acre farm Thursday, April 5, 2007, near Atlanta, Ill.   (AP Photo/M. Spencer Green)
Rodney Gaffney fills his flexible-fuel pickup with E30 gasoline on Friday, June 20, 2008, in Granite Falls, Minn.
Rodney Gaffney fills his flexible-fuel pickup with E30 gasoline on Friday, June 20, 2008, in Granite Falls, Minn.   (AP Photo/Elizabeth Dunbar)
A handful of corn is shown before it is processed at the Tall Corn Ethanol plant in Coon Rapids, Iowa, in this May 24, 2006 file photo.
A handful of corn is shown before it is processed at the Tall Corn Ethanol plant in Coon Rapids, Iowa, in this May 24, 2006 file photo.   (AP Photo/Charlie Neibergall)
Lynn Barry unloads corn at the Tall Corn Ethanol plant in Coon Rapids, Iowa, in this 2006 file photo. Strong demand for corn from ethanol plants is driving up the cost of livestock feed.
Lynn Barry unloads corn at the Tall Corn Ethanol plant in Coon Rapids, Iowa, in this 2006 file photo. Strong demand for corn from ethanol plants is driving up the cost of livestock feed.   (AP Photo/Charlie Neibergall)
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